British Columbias Carbon Tax A brief history Matt Horne Pembina - PowerPoint PPT Presentation

British Columbia’s Carbon Tax A brief history Matt Horne Pembina Institute April 26, 2016

Eight years and counting 2

Tax rate and coverage Implemented in 2008 at $10 per tonne of CO 2 e with a — schedule to reach $30 per tonne in 2012 (equivalent to ~7 cents per litre of gasoline). Frozen at $30 per tonne from 2013 until 2018. — Applies to almost all fossil fuel combustion in B.C. (~70% — of B.C.’s carbon pollution). B.C. Carbon tax rate schedule $35 $30 $25 $20 $15 $10 $5 $0 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 3

Revenue recycling 4

Environmental results 5

Economic results Change in GDP 2.00 1.75 1.50 1.25 BC 1.00 Rest of Canada 0.75 0.50 0.25 0.00 2000 2002 2004 2006 2008 2010 2012 2014 6 (Source: Statistics Canada, 2000-2014)

Political perspectives 80 MLAs supporting the carbon tax MLAs opposed to the carbon tax 60 40 20 0 2009 election 2013 election 7 (MLA – Member of the Legislative Assembly)

Public perspectives Support for B.C.'s carbon tax 70% 60% 50% 40% 30% 20% 10% 0% Feb July May June Nov Nov Oct Oct Oct 2008 2008 2009 2010 2011 2012 2013 2014 2015 8 (Source: Environics Institute, 2008-2015)

Next steps? In 2015, B.C. started a process to determine — the next steps in its climate plan. A multi-sector advisory panel recommended — increasing and expanding the carbon tax. B.C. is planning to release its new climate — plan this spring. 9

Affordability and competitiveness Affordability — Reduce sales tax, o increase low-income tax credit, and increase northern/rural tax credit Competitiveness — Implement measures to o protect competitiveness of emissions-intensive, trade- exposed sectors 10

Support for next steps 11

Lessons learned The carbon tax has been an economic and — environmental success. That success also depends on the other policies in — B.C.’s climate plan. The success has led to broad support for carbon — tax’s first phase. Everyone has an opinion on how to best use — carbon tax revenue. Next steps are still uncertain. — 12

Thank you Matt Horne phone: 778.235.1476 email: matth@pembina.org twitter: @HorneMatt