| Sourced From |
Reaching Ottawa’s carbon emission targets could lead to a massive wealth transfer and constrain economic growth, especially in Alberta, says a study commissioned by two of Canada’s major environmental groups.
If Ottawa adopts a carbon pricing policy and a reduces carbon emissions 20% by 2020, the federal government would rake in $45 billion per year by 2020 in revenues, says the study commissioned by the Pembina Institute and the David Suzuki Foundation.
Economic output in Alberta, as measured by gross domestic product, will be 8.5% less than without new regulations and emissions targets.
Across Canada, economic growth will be constrained 1.5%, the study says.
Premier Ed Stelmach denounced the plan as a money-transfer scheme.
“All these ideas coming forward, it’s all about sending money someplace else,” he said yesterday.
“There won’t be another wealth transfer to Ottawa under my watch, I can tell you that.
“Nobody’s talking about introducing technology so that we can share that technology with other jurisdictions that are producing a lot of carbon and protect the whole world.”
The report is the first to give a regional breakdown of the costs associated with a domestic cap-and-trade system and the federal emission reduction targets.
Alberta Environment Minister Rob Renner said his government hasn’t estimated how the province’s economy will be affected.
“Clearly, there is a cost,” Renner said. “That’s undeniable that there is a cost associated with CO2 mitigation. How that relates to GDP really is dependent upon what is the approach that’s taken.”
What this means is it makes little sense to calculate a cost unless Ottawa specifies what exactly the new regulations will be, he said.
“I think what this report points out is that a one-size-fits-all is clearly not an acceptable way for Canada to meet this challenge,” Renner commented.
In other words, Stelmach’s government is not keen on a cap-and-trade approach that would unduly penalize the oilsands, one of the province’s major carbon emitters, and its predominantly coal-fired power generators.
“There is more than one way for us to achieve the outcomes that we desire,” Renner said.
Alberta has earmarked about $2 billion to advance carbon capture and storage, a largely untried technology.
Industry groups could not be reached for comment yesterday.
By MARKUS ERMISCH, SUN MEDIA
Related posts: