Canadian Biomass Magazine

Federal carbon tax keeps Canada competitive: ABC

October 4, 2016
By Advanced Biofuels Canada

Oct. 4, 2016 -The federal government announced yesterday its intention to place a national price on carbon emissions of $10 per tonne in 2018, rising by $10 per tonne each year to $50 per tonne by 2022. The federal government's action allows provincial or territorial governments to select from amongst types of carbon pricing systems (carbon tax or cap & trade), and to utilize the carbon revenues as they choose (e.g. reduce other taxes, or recycle the revenues into clean economic growth).

Advanced Biofuels Canada applauds the federal initiative on climate change with this introduction of an economy-wide price on carbon. A well-designed national carbon price system will address economic distortions between provinces and territories, and allow Canada to use border adjustments to maintain competitiveness with our international trading partners.

According to Ian Thomson, President, “The Trudeau government’s decision to place a uniform national price on carbon is an important step to reducing transportation sector emissions. An effective carbon price system must put a visible price on the lifecycle carbon emissions of all fuels to support the transition to cleaner transportation fuel choices. Nascent carbon pricing systems in BC (carbon tax) and Quebec (cap & trade) have room for improvement, and all Canadian markets should adopt a common approach to maintain level economic conditions.

“There are cleaner transport fuel options available today, such as sustainable, low carbon advanced biofuels, electricity, hydrogen, and renewable natural gas. In addition to a predictable price on carbon emissions, we call on governments to adopt firm regulatory measures to assure these cleaner, low carbon fuels are available to consumers and that real carbon reductions are achieved in the transportation sector.

“Advanced Biofuels Canada has recommended that Canadian governments adopt a Clean Fuels Strategy to combine firm action on carbon pricing, flexible low carbon fuels regulation, and strategic cleantech investment to leverage Canada’s natural resources and demonstrate leadership on transport emissions. This approach will ensure that Canada benefits from the economic growth in the low carbon economy and meets its carbon reduction commitments.”


Our organization promotes the production and use of low carbon advanced biofuels in Canada, which our members supply across North America and globally. Our members have invested in biofuels processing and supply chain operations across Canada. Advanced biofuels have GHG reductions of at least 50% below comparable fossil fuels, and are made from renewable biomass. Canada has approximately 750 M litres of advanced biofuels production capacity.

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