Muse.On-The.Net

The ruling British Columbia liberal party is not known for being green.  The idiomatic party is conservative-minded and tends to favor business interests.  But, like any political party interested in re-election, it must present itself as embracing current political sentiment. Thus finance minister Carole Taylor presented her 2008 budget dressed head to toe in green and introduced B.C.’s first Carbon Tax.  The right message at the right time, perhaps.  But, as is usual in politics, all is not exactly what it seems.

The carbon tax applies to gasoline, diesel, natural gas, coal, propane and home heating fuel and will be applied in stages.  Gasoline taxes will begin at 2.4 cents per litre in July 2008, increasing to 7.2 cents per litre by 2012.  The taxes are expected to cut B.C.’s greenhouse gas emissions by about 5% by 2020 - well short of the government’s own 33% goal.

The tax is applied to citizens but major business interests, particularly heavy polluters such as aluminum and cement producers, as exempt.  Furthermore, the oil and gas sector will see increased subsidies - an extra $50 million - to the tune of $327 million yearly. If the carbon tax is really about reduction of pollution and greenhouse gas emissions should governments subsidize these endeavours at all? Clearly not!

Environmental groups seem reluctantly encouraged, nonetheless.  “Two steps forward, one step back,” says Will Horter of the Dogwood Initiative.

The carbon tax is expected to raise $1.8 billion over 3 years.  The funds, by law, must be returned to businesses and individuals and does not become general revenue.  The plan is considered revenue-neutral.

The plan is a step in the right direction but misses on two key points.  First, address the issue of fair costs by removing subsidies, not increasing them.  These subsidies discourage investment in alternative, cleaner-energy research and production.  Second, while I realize the political sensitivities here, use the carbon tax revenues to encourage clean energy solutions and pollution clean-up rather than return it string-free to citizens and business.  Make the tax work towards a solution.

Overall, the liberals should be applauded for their efforts as being green was not even on their agenda 5 years ago.  Perhaps the real praise should go to those who have swayed public opinion in the green direction.