Alberta and Carbon
Albertan’s heavily rely on coal as a major source of energy, be it for transportation, heating, or gas. The burning of carbon is linked to the emission of greenhouse gases and carbon pollution. Since Alberta has the highest coal pollution out of all the provinces in Canada, the province’s government is always looking for ways to improve in a way that benefits all citizens.
Why a Carbon Tax and How Will it Work?
Considering that Alberta produces the most pollution in Canada, the government has implemented the carbon tax with the goal of reducing emissions. Ultimately, the tax will encourage Alberta’s families to minimize carbon pollution. The carbon tax will be applied to transportation and heating systems which includes diesel, gasoline, natural gas and propane (it does not apply to electricity).
Carbon Levy Rates
You may be asking yourself, how much will I be charged? and how is this calculated?
Well, at the beginning of 2017, a carbon tax was implemented at $20 per tonne on carbon dioxide emission. As of January 1, 2018, it increased to $30 per tonne.
- Gasoline: Increase from $4.49 per litre to $6.73 per litre
total increase: $2.24/L
- Diesel: Increase from $5.35 to $8.03
total increase: $2.68/L
- Natural Gas: Increase from $1.01/GJ to $1.57/GJ
total increase: $0.50 per gigajoule (GJ)
- Propane: Increase from $3.08 to $4.62
total increase: $1.54/L
Where is My Money Going?
The revenue collected from initiatives to reduce emissions will be going to pay investments that support the transition to this new, fuel efficient, low emission economy. This includes rebates that protect low and middle-income families. It has been projected that 60% of households will get a full or partial rebate. Other places where your money will go to:
- Renewable energy projects and electricity transition projects
- Industrial and consumer energy efficiency programs
- Indigenous climate leadership initiatives
- Environmentally efficient transit and infrastructure projects
What a Carbon Tax Means for the Oil & Gas Industry
Plainsman is committed to improving production and becoming as efficient and waste free as possible. What the carbon tax implies for industries like the Oil and Gas production is that companies who use best practices and invest in energy efficient facilities will be rewarded. On the other hand, companies who do not follow best practices will face higher charges due to the fees implemented. For instance, if a company exceeds the set amount of emissions will have to pay $30/ tonne of emission over the limit.
In this sense, Alberta will be looking to being more competitive and encouraging its companies to follow in these practices. This restructuring is called the Carbon Competitiveness Incentive and will replace the regulations currently set under the Specified Gas Emitters Regulation.
At Plainsman we are committed to becoming sustainable and as waste free as possible. These new regulations will contribute to big oil companies like us, by creating the investment and structure needed for us to move towards these efforts.
Learn more about our products today http://plainsmanmfg.com/products/.