Canada has announced a carbon pricing strategy on emissions that takes effect in 2018 with a $10 per ton rate. The fees rise to $10 per ton per year until they are capped out at $50 per ton by 2022. As part of the legislation, provinces and territorial governments can select from two carbon pricing systems: carbon tax or cap and trade, and have the ability to use the carbon revenues as they choose. Advanced Biofuels Canada commended the policy but has cautioned that a well-designed national carbon price system will address economic distortions between provinces and territories and allow Canada to use border adjustments to maintain competitiveness with our international trading partners.

Thomson said there are cleaner transportation fuel option today including low carbon advanced biofuels as well as electric, hydrogen and renewable natural gas vehicles.

“The Trudeau government’s decision to place a uniform national price on carbon is an important step to reducing transportation sector emissions,” said Ian Thomson, President of Advanced Biofuels Canada. “An effective carbon price system must put a visible price on the lifecycle carbon emissions of all fuels to support the transition to cleaner transportation fuel choices. Nascent carbon pricing systems in BC (carbon tax) and Quebec (cap & trade) have room for improvement, and all Canadian markets should adopt a common approach to maintain level economic conditions.”

The organization is also calling on governments to adopt firm regulatory measures to assure that not only real carbon reductions are achieved, but to ensure these low-carbon fuels are available to consumers.

“Advanced Biofuels Canada has recommended that Canadian governments adopt a Clean Fuels Strategy to combine firm action on carbon pricing, flexible low carbon fuels regulation, and strategic cleantech investment to leverage Canada’s natural resources and demonstrate leadership on transport emissions.” Thomson concluded, “This approach will ensure that Canada benefits from the economic growth in the low carbon economy and meets its carbon reduction commitments.”