Want to get the low-down on efforts to reduce carbon emissions? This article (submitted by Nancy Bray and Derek Simon on behalf of FUSION Halifax's Sustainability Committee) is a perfect primer on the issue.
The planet is heating up - and so is the debate about what to do about it. Global warming is a near certainty and a carbon reduction plan will likely be adopted in Nova Scotia. The current controversy is over the best option to address emissions: carbon tax, emissions trading or a combination of the two. With so much political posturing, it's difficult to stay informed about this complex issue. The FUSION Sustainability Action Team, which is comprised of young professionals living and working in Halifax, strives to voices the perspectives of our members, while engaging and educating the community on environmental issues, such as the carbon debate.
First, the basics. A carbon tax is a price on carbon emissions, usually implemented by taxing fossil fuels. Carbon taxes are a reality in many European countries and in Quebec and British Columbia. The taxes increase the cost of energy and consequently the cost of most goods and services. However, most carbon tax systems propose to be revenue-neutral - the increased costs are offset by tax cuts and credits in other areas, including income taxes. By putting a price on emissions, carbon taxes level the playing field between high carbon goods and services, such as coal-fired electricity, and low carbon alternatives such as wind, tidal, solar and bio-mass, spurring investment in cleaner technologies and energy efficiency, which lowers emissions. This could help the province attract and retain young entrepreneurs and workers, keen to work in a dynamic and growing green economy.
In an emissions trading, or cap and trade system, the government sets a limit on emissions. Companies are assigned permits, which give them the right to emit a certain quantity of pollutants. Companies that are successful in reducing their emissions can sell their extra permits on an open market, or retire them and receive tax credits. Companies that do not reduce their emissions have to buy permits. Once trading starts, supply and demand put a price on pollution. The cap set by the government usually drops over time, forcing continued emission reductions. Emissions trading has been successful in reducing much of the pollution which caused acid rain in North America, at minimal cost. Several Canadian provinces and U.S. states have signed on to the Western Climate Initiative, a regional carbon trading scheme.
As Cheryl Ratchford, Energy Director at the Ecology Action Centre states "It's key that a price on carbon emissions is established, whether through a cap and trade system or a carbon tax." Dr. Larry Hughes, a Professor in the Energy Research Group at Dalhousie University points out that "In theory, cap and trade systems target large final emitters" such as energy and heavy industry. However, cap and trade is less than ideal for the large number of small polluters that nonetheless contribute to the problem in a big way, like cars. This is why B.C. and some European countries have combined carbon taxes with emissions trading: it is not an either-or proposition. Margaret Murphy of Nova Scotia Power took a similar stance, "It all has the same result: reducing emissions of CO2. We are preparing our business for that. We can see the future, and it is less fossil fuels."
As a province that is dependent on coal and heating oil, no matter which option we choose, Nova Scotia will be hit hard by putting a price on carbon emissions. However, as a coastal province, Nova Scotia will also be affected by rising sea levels and severe storms, if global warming continues unchecked. Like many changes, reducing our provincial carbon footprint requires adjustments. But with change comes the opportunity to build a vibrant, cleaner and more efficient province. We will have to take a long-term view of what is best for our province and our planet. Only one thing is for sure - in the face of a challenge as immense as global warming, the status quo is not an option.