OTTAWA — Canada's environment commissioner says the country's carbon pricing system is disproportionately hard on Indigenous communities and small businesses and not hard enough on the biggest emitters.
DeMarco says there is a"broad consensus" among experts, including the World Bank, the OECD and the International Monetary Fund, that carbon pricing is a critical tool for curbing greenhouse gas emissions. There is not enough sunlight exposing how well provincial systems compare to the federal benchmark, he adds, and grant money to help small businesses become more energy efficient has been slow to roll out.
In general, heavy industries pay the carbon price only on a small portion of the emissions they generate rather than on all of the emissions produced by the fuels they purchase. That plan attempts to prevent economically devastating impacts on companies that could compel them to move elsewhere, while still ensuring there is an incentive to cut their emissions.
The government has been promising legislation for what it calls the"just transition" for more than two years but has yet to deliver it. A just transition plan is a critical part of getting public buy-in for moving away from fossil fuels and toward lower-emitting and zero-emitting sources of energy.
It’s hard on everyone!
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