Canadian Manufacturing

Carbon tax to increase through 2030 as part of federal climate plan

The plan includes $8 billion in environmental funding on top of $7 billion already announced.

December 11, 2020  The Canadian Press

The federal government has released a climate change plan that includes increases to its carbon tax in each of the next 10 years.

The federal price on carbon will continue to increase by $10 a tonne until it reaches $50 per tonne in 2022.

The price is set to increase by $15 a tonne after that until it reaches $170 by 2030.

The plan also includes $8 billion in environmental funding on top of $7 billion already announced.

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The money is planned to go to retrofitting buildings such as arenas; renewable energy; biofuel and hydrogen projects; and getting remote communities off of diesel.

There is a $3-billion challenge fund for large emitters to implement strategies such as carbon capture.

The plan is to achieve a 32 per cent reduction in emissions by 2030, slightly more than the federal Liberal’s 30 per cent commitment.

Ottawa hopes to reach 40 per cent reductions when provincial programs are also layered on.

Federal officials say rebates will reduce the impact on individual taxpayers and that most families should get more back than they pay in tax.