What you need to know about the proposed C-20 carbon tax proposal

The federal government has released its carbon tax proposals for the coming budget, with a carbon tax to be imposed in the fall of 2019 and an emissions trading scheme in 2020. 

The proposed carbon tax would be a $10-per-tonne levy on greenhouse gas emissions, similar to the levy proposed in the 2016 budget, but would apply to every sector of the economy, including transportation and the environment. 

If implemented, the tax would amount to about a quarter of the GDP in 2030, the government said. 

What you need read: The budget will be released Thursday.

The government says the new plan is a more progressive carbon tax, including a reduction in carbon intensity by about 2 per cent per year, with the rest of the revenue going to support research and development and other measures.

The government said it wants to reduce carbon intensity in the economy by 2 per and 10 per cent for the next decade, respectively.

It says it is committed to a goal of reducing emissions by 30 per cent below 2005 levels by 2020.

While the plan includes a number of other measures that are not part of the existing plan, including an increase in the amount of greenhouse gas pollution from power plants and other sources, there is no specific proposal to reduce emissions from transportation.

“In the budget, the Government will introduce measures to increase Canada’s ability to compete globally, strengthen the economy and create jobs,” Environment Minister Catherine McKenna said in a statement.

“It will also ensure we are taking strong action on climate change, and the Canada we want.”

The carbon tax and the carbon trading scheme are being developed jointly by the Trudeau government and the provincial governments of B.C., Ontario and Alberta.

They have yet to be announced, but will be announced in the coming months.

The C-21 budget will include $8.2-billion for climate-related initiatives, such as the new Canada2020 program and a new National Greenhouse Gas Emissions Inventory. 

But the budget will also include $1.6-billion in infrastructure projects, including the new National Highway Traffic Safety Program. 

“This is an important budget, which will deliver a clear vision for Canada to meet our ambitious Paris climate commitments,” McKenna said.

Follow the government’s full list of commitments in the budget.

Other initiatives that will be included in the next budget include:An infrastructure tax of $10 per tonne to support the creation of new infrastructure;An infrastructure fund to support infrastructure projects;The construction of a national marine and coastal carbon market;The establishment of a new national marine reserve;Support for research into the benefits and environmental costs of carbon capture and storage technologies, including technologies such as carbon capture from coal mines;The creation of a National Infrastructure Investment Bank to provide loans to provinces for the development of green infrastructure projects and projects related to carbon capture;A National Green Infrastructure Investment Fund to provide financing for green infrastructure development;The development of a carbon offsetting strategy for oil and gas exploration and production;The introduction of a Canada2020 pilot program that will assess the impact of a proposed carbon-based price on emissions;The appointment of an expert panel on climate policy to advise on the development and implementation of carbon pricing initiatives;The review of the federal greenhouse gas tax for 2019-20 to ensure that the tax is not overly burdensome to Canadians;A new Climate Action Plan for the economy; and the creation and funding of a federal carbon accounting unit.

Follow the latest news on Climate Change in the Climate Change Tracker on The Globe and Mail, CBC News, The Guardian, The Globe & Mail and The Huffington Post.

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