Rio Tinto Alcan’s aluminum smelter at Kitimat competes against producers in the Middle East and Russia that have no carbon tax. (Rio Tinto)

Rio Tinto Alcan’s aluminum smelter at Kitimat competes against producers in the Middle East and Russia that have no carbon tax. (Rio Tinto)

B.C. VOTES 2020

B.C. carbon tax highest in Canada, export industries unprotected

B.C. NDP, B.C. Liberals say they’re looking at exemptions

B.C. currently has the highest carbon tax in North America, and its unique lack of protection for export industries like mining and smelting is making it more likely that new copper and steelmaking coal mines are built elsewhere, the Mining Association of B.C. warns.

B.C. currently has 14 operating mines and two smelters, the Teck smelter at Trail and the recently expanded Rio Tinto Alcan aluminum smelter at Kitimat. In a new report, the mining industry notes that B.C.’s copper mines has lower emissions than Chile’s, its metallurgical coal is produced with half of the greenhouse gas emissions of Australia’s, and its aluminum is seven times less carbon-intensive than Russia’s.

That advantage is largely a result of abundant hydroelectric power, and the B.C. industry has been using it to reduce emissions further. But in a price-sensitive world market, mine investment is likely to go to countries that don’t have carbon tax. The industry calls it “carbon leakage,” where a higher carbon tax costs jobs locally and produces more emissions globally.

If B.C. doesn’t offer exemptions to export industries like metal mining and production, “you’ll reduce emissions in B.C. because you’ll close mines,” Michael Goehring, CEO of the Mining Association of B.C., said in an interview. He emphasized that the industry supports a price on carbon and isn’t asking for the B.C. carbon tax to be eliminated, just modified to match Ottawa’s protections for export industries. The Canadian government and all other provincial governments have such protections, and they’re not alone around the world.

“All of the Northern European nations do it,” Goehring said. “California does it.”

Asked about the issue at a campaign stop in Langley Oct. 21, B.C. NDP leader John Horgan said he’s working on the exemption issue, which was first raised in B.C. as its cement makers started losing business to U.S. and China imports.

“This is an issue that we’ve been working on inside of government, and if we’re re-elected on Saturday we’re going to be focusing on making sure that our traditional industries don’t suffer, in fact they benefit from our leadership on climate action,” Horgan told Black Press.

RELATED: NDP breaks on sales tax, carbon tax make LNG happen

RELATED: Delayed carbon tax, sales tax payments come due in B.C.

The B.C. Liberal election platform calls for industrial carbon tax exemptions, committing the party to “work to ensure that our carbon tax system for job-creating export industries does not increase global greenhouse gas emissions by driving investment to higher-emitting jurisdictions.”

B.C. Liberal leader Andrew Wilkinson said the issue has to be dealt with “very soon” or B.C. will lose industry and jobs.

“This has been done in many jurisdictions around the world, and it’s high time it was dealt with in B.C.,” Wilkinson said in an interview Oct. 21. “We can’t see our exports losing competitiveness against jurisdictions where there is no such tax.”

Most people see the carbon tax when they fuel up vehicles, with the B.C. tax currently at 8.89 cents a litre on gasoline and 10.23 cents on diesel on top of federal and provincial fuel. It also applies to natural gas, currently at 7.6 cents per cubic metre, as well as propane and industrial fuels like coal. The NDP government increased the tax from $35 to $40 per tonne of emissions in April 2019, then delayed the next increase due to the COVID-19 pandemic. It is due to rise to $45 in April 2021, moving to the federal target of $50 after that.

B.C. NDP platform highlights:

• Reduce B.C.’s total greenhouse gas emissions by 40 per cent in 2030

• Fast-track B.C.’s industrial electrification strategy for natural gas and other industries

B.C. Liberal platform highlights:

• Work with Ottawa to review scheduled carbon tax increases in light of the COVID-19 recession

• Encourage retrofitting of B.C. homes and businesses to reduce emissions

B.C. Green Party platform highlights:

• Commit B.C. to be carbon neutral by 2045, matching California

• Implement a moratorium on hydraulic fracturing for natural gas


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC politicsBC Votes 2020

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Addie Pafiolis with her son, Theo, who died just five days after his birth due to a heart condition in 2017. For the past four years, Addie and her husband Chris have been supporting local families around the holiday season in Theo's memory. (Contributed)
Lake Country couple supporting local familes in son’s memory this Christmas

Theo Pafiolis was five days old when he passed away due to a heart condition; now, his parents are supporting others in his name

The staff at The Roster are excited to give back with the sports club’s Dish Out the Kindness fundraising initiative in support of the Upper Room Mission and the Starfish Backpack program. (Jennifer Smith - Morning Star)
Vernon sports club dishes out kindness

Upper Room Mission and Starfish Backpack Program will benefit from The Roster sales

Emergency responders reported to a vehicle over an embankment Friday, Nov. 27, 2020, shortly after 6 p.m. on Highway 97 on hospital hill. (Brendan Shykora - Vernon Morning Star)
Vehicle over embankment slows Highway 97 traffic in Vernon

Emergency crews responded to a vehicle that went over an embankment Friday night

COVID-19. (Image courtesy CDC)
47 new COVID-19 cases in Interior Health region

1,538 total cases, 399 are active, ten in hospital

(Phil McLachlan - Capital News file)
Update: Glenmore Rd reopens after ‘serious’ high-speed collision

Collision occured at 2910 Glenmore Road North, at approx. 2:30 p.m.

Mary Cox and Jack Plant dance in their pyjamas and slippers at the morning pyjama dance during the Rhythm Reelers’ 25 Annual Rally in the Valley Square Dance Festival in Chilliwack on June 4, 2011. Sunday, Nov. 29, 2020 is Square Dancing Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of Nov. 29 to Dec. 5

Square Dancing Day, Disability Day and International Ninja Day are all coming up this week

Black Press Media and BraveFace have come together to support children facing life-threatening conditions. Net proceeds from these washable, reusable, three-layer masks go to Make-A-Wish Foundation BC & Yukon.
Put on a BraveFace: Help make children’s wishes come true

Black Press Media, BraveFace host mask fundraiser for Make-A-Wish Foundation

Dentice di Frasso, a member of Italian nobility, once owned land in Summerland. (Contributed)
Italian nobility family once lived in Summerland

Dentice di Frasso and his family owned land in the Prairie Valley area

114 Canadians were appointed Nov. 27 to the Order of Canada. (Governor General of Canada photo)
Indigenous actor, author, elder, leaders appointed to Order of Canada

Outstanding achievement, community dedication and service recognized

Summerland residents have been receiving a telephone scam with the number showing as the telephone number of the local RCMP detachment. (Black Press Media files)
Summerland RCMP telephone number spoofed in scam calls

Number used in scam attempts from tax agency

(Village of Lumby photo)
Mysterious, loud ‘boom’ shakes North Okanagan residents

Village staff, Earthquakes Canada aren’t sure what caused the explosion-like sound

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Follow public health recommendations, says Interior Health as COVID-19 cases continue to climb in Revelstoke. (Image courtesy CDC)
Revelstoke positive COVID cases grows to 29

Interior Health announced a cluster in the community on Nov. 26

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Most Read