It is unrealistic to think that the Ontario and other governments are implementing a carbon tax is because they care about climate change. Governments have known about the detrimental effects of climate change for decades, and did nothing.
The real reason for implementing a carbon tax is because it is a new source of government revenue that will increase as the price of carbon per metric tonne increases. There are not many revenue generating options available, and the timing is right to shift towards a green economy for the 21st century. More and more countries are finding the benefits of doing so on many levels, and it makes sense to join sooner than later.
Governments are saddled with huge debts, and growing deficits that are becoming unmanageable, even in a low interest environment. Ontario’s debt is $300-billion, the largest debt of any sub-national government in the world, and the current budget is the ninth deficit in a row at $7.5 billion. They had to try something new if they were going to reverse this trend.
The carbon tax is more like a user fee. The additional $0.04 per litre is added to the price of gasoline. If you drive an electric car, take public transit, ride a bicycle, or walk then you will not be charged this fee. There are choices available.
A carbon tax will also be added to the price of natural gas (which is mostly methane gas) which is used mostly for heating. The average annual increase of $60 will be felt by most homeowners; however this will be off-set by government incentives to improve energy conservation so a net reduction in heating bills are likely.
What is important is that Ontario is addressing two of the three major sources of greenhouse emissions with these two carbon taxes: Transportation, and Buildings. The revenue from the carbon tax will be used to fund public transit, and other green initiatives.
For 2013, Ontario’s top three greenhouse gas emissions by sectors are as follows: Transportation (35%), Industry (28%), and Buildings (19%).
Industry and large emitters will likely be trading their own carbon credits/deficits.
What about climate change? Ontario, and other governments know first-hand that extreme weather wreaks havoc on the economy, and infrastructures. It costs billions of dollars to clean up. Flood, droughts, hurricanes, etc. have educated the public and governments that the cost from climate change affects everybody, and it will only increase if nothing is done. It is too costly for governments not to take a leadership role on climate change.
There is a shift afoot, and it is a good thing for us, our children, and grand-children.
Sharolyn Mathieu Vettese
President
SMV Energy Solutions
www.smvholdings.ca