There has been much debate and hand-wringing about Alberta’s Jan 1 price bump on carbon. This is a new policy, separate from the long-standing SGER (Specified Greenhouse Gas Emitters Regulation), which applies to LFEs (Large Final Emitters). The new carbon levy is robust, applying to industrial, commercial, and residential energy users across the province. Its expected to raise close to $10 billion over the next five years.
One of the more objective questions I’ve seen asked online by a curious member of the concerned public, is how are the funds raised going to be spent? They’re all for progressive environmental and economic policies, but what’s the re-investment plan? Recently, Environment Minister Shannon Phillips hosted two “telephone town halls“. Specifically, about the Carbon Levy, how it would affect consumers and businesses, and how the money would be re-injected to strengthen the Alberta economy.
A complete overview on how the Carbon Levy will be administered, its exceptions, rebates, and re-investment programs can be found here at the Alberta Ministry of Environment.
Considering the government took a full year for exhaustive consultations with Albertan residents, industry, First Nations, municipalities, and outside experts, before crafting this rock-solid example of climate legislation leadership, it deserves a fair shot.