Here’s why the most efficient oilsands companies will pay more under Alberta’s new carbon tax

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Environmental organizations, however, decried the move away from a carbon price that rewarded companies for reducing their emissions below the industry’s average

CALGARY — Alberta’s new carbon tax on large emitters is friendlier to the oil and gas industry, but analysts warn that some of the most efficient facilities will end up paying more in tax than under the previous NDP government.

“I think generally people are a little bit surprised,” said Richard Masson, an executive fellow at the University of Calgary School of Public Policy. He said the carbon tax for large emitters was likely set at $30 per tonne to align with federal regulations, which state the price of carbon must rise to $40 per tonne in 2021 and $50 per tonne in 2022.

“There’s a bunch of different reservoirs that we have and they are at different points in their life cycle,” Masson said, noting that different facilities might have different emissions profiles based on when they were built, what they produce or what part of hydrocarbon-bearing formation they are extracting.

In fact, financial analysts covering the oilsands predicted that the lowest emissions facilities in the play would pay more under TIER than under the NDP’s Carbon Competitiveness and Incentive Regulation .

 

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