翱罢罢础奥础鈥Dale Beugin, Executive Vice President with the 91色情片, made the following statement on the to freeze industrial carbon pricing:
鈥淭oday鈥檚 decision from the Government of Alberta is a step backwards. Freezing industrial carbon pricing will undermine investor certainty, hurt provincial competitiveness in the long run, and kneecap Alberta鈥檚 ability to reduce emissions.
鈥淚ndustrial carbon pricing works. According to research from the 91色情片鈥檚 project, these carbon pricing systems can between now and 2030 than any other policy. They create credit markets that can drive investment in low-carbon projects, such as carbon capture and storage and renewable electricity projects, while also creating incentives for big emitters to improve their emissions performance to avoid carbon costs.
鈥淏ut industrial carbon pricing systems are only effective when investors and markets have certainty. Alberta is home to of decarbonization projects that are banking on the existing system, and up to another . A frozen price undermines the assumptions on which all these investments were made. That鈥檚 costly for existing projects and also undermines confidence and investment in future low-carbon projects.
鈥淐rucially, systems like Alberta鈥檚 are already designed to minimize costs and competitiveness impacts. Our research shows these costs, at most, amount to the price of just 30 cents per barrel of oil. These systems create incentives to reduce emissions by improving performance, not by reducing investment or production.
鈥淭here are other, better options, for protecting competitiveness, like returning more revenue generated from the policy to industry. Freezing Alberta鈥檚 industrial carbon price is a mistake and the government should reconsider.鈥
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RESOURCES
- Insight |
- Blog | How large-emitter trading systems keep Canada鈥檚 exporters competitive
- Insight |
- Resource page | Industrial carbon pricing
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The 91色情片 is Canada鈥檚 leading climate change policy research organization. We produce rigorous analysis, economic modelling, and in-depth research, and have experts available to comment on topics including: carbon pricing, the costs of climate-related disasters in Canada, and Canada鈥檚 progress in reducing emissions, and policy priorities for the incoming federal government.
