Happy Canada Day!.Drivers in the Maritimes will have even more to celebrate this long weekend by paying out more at the gas pumps when the federal carbon tax takes effect on July 1..That’s when the provinces of PEI, Nova Scotia and Newfoundland and Labrador switch over their provincial carbon regimes to the federal one already in effect in Alberta, Saskatchewan, Manitoba, Ontario, Nunavut and the Yukon..For drivers, it’ll mean a hit of about three cents a litre in a region that already pays some of the highest gasoline prices in the country, similar to what drivers in Western Canada experienced on April 1 when the federal levy went up to $65 tonne..Motorists in Nova Scotia, however, are expected to take a 12-cent jolt because their pricing regime was based on a carbon trading system rather than an outright tax to bring it in line with federal standards, according to a technical briefing with Environment and Climate Change Canada (ECCC) on Wednesday morning..Because it was for background only, Western Standard cannot attribute the details to any specific sources, other than to say representatives of ECCC, Natural Resources Canada and the Canadian Revenue Agency were on the call..Despite a higher upfront outlay at the gas pump, the upshot for Atlantic Canadians is they will now be eligible for quarterly rebate payments from the CRA. Those range from $386 per year for a family of four in Alberta — presumably because we’re the highest emitters — to $244 in Ontario..Once the regime is fully implemented, Newfoundlanders can expect to receive $328, Nova Scotians $248 and PEI $240, all effective July 1..Thanks to the provincial gas tax holiday, Albertans pay the lowest fuel prices in the country at $1.38 per litre according to Gasbuddy.com, followed by Nova Scotia at $1.53. Even with the 12-cent increase, Nova Scotia’s will still be lower than either PEI or Newfoundland at $1.63 and $1.67, respectively..British Columbia — which has its own provincial carbon levies that were held up as a model at the ECCC briefing — pays an average of $1.90, which is even higher in the Lower Mainland at about $2.05.. Carbon pricingCarbon taxes across Canada. .That doesn’t mean the rest of the country is off the hook, however. That’s because on July 1 the Clean Fuel Standard also takes effect, which means companies in Canada that produce or import fuel products will have to lower the “full cycle” carbon intensity of their products or be forced to buy credits to offset..Companies — such as EV charging stations — can generate and in turn sell those credits to refiners and fuel producers who don’t comply. Which is to say it’s a glorified carbon trading system..The number of credits will eventually be reduced annually, which will inevitably drive up the cost of compliance. Those costs will inevitably be passed onto consumers, over and above future carbon tax increases which are scheduled to increase to $170 per tonne by 2030..Because eligible companies have been generating credits for several years already, government officials said they don’t expect it to have a meaningful impact on fuel prices for years to come..To Alberta’s advantage, carbon capture and storage is eligible for generating credits, officials said.
