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Sound Off

SOUND OFF: What is the true cost of Clean BC?

Jan 27, 2020 | 4:14 PM

LATE IN 2018, there was much hype and hope around the creation of Clean BC. This was billed as a new aggressive path forward to reduce our greenhouse gas (GHG) emissions in B.C. Fourteen months after it’s introduction, it’s safe to say that Clean BC is falling short, proving to be largely marketing with little in the way of tangible impacts.

When Clean BC was introduced, John Horgan’s government had to admit that the plan only accounted for 75 per cent of needed emission reductions — but not to worry; the missing 25 per cent of the plan would be revealed shortly thereafter. Well, 14 months later and there is still no sign of where and how the missing 25 per cent of the plan will be addressed.

The missing 25 per cent is actually the most important part of being able to achieve any meaningful targeted reductions in GHGs. I think everyone can agree that the last 25 per cent of just about any strategic plan is the hardest and usually most expensive piece. Yet in Clean BC there doesn’t appear to be much worry about setting out the plan for the missing 25 per cent — and it certainly does make you wonder why.

During last year’s budget discussions, I pointed out to the environment minister that according to the government’s own budget document, emissions have been budgeted to rise in the first three years of the new Clean BC plan. Carbon tax collected under the previous plan was collected on 41.7 megatonnes (Mt) of emissions, yet with a steady year-over-year increase under Clean BC, the tax will be collected on 44 Mt in the third year.

During a time when there is every signal that next year’s fiscal budget is headed into deficit, it appears the government has decided that it actually needs GHGs to rise in order to balance their budget. If emissions were to hold at the 41.7 Mt pre-Clean BC level the government would have a $400 million hole in its budget. Imagine the fiscal problems if emissions were to drop under 41.7 Mt?

Another large portion of emission gains under Clean BC concerns transportation. Much has been made about the societal shift to electric vehicles and that is certainly a move that most people can get behind. However, that shift accounts for only a 1.3 Mt reduction in our GHGs.

A larger drop in emissions comes from B.C.’s new and increased low carbon fuel standard. The current standard for our fuel mix is that 10 per cent needs to be a lower carbon fuel like ethanol, while the new standard will be increased to 20 per cent. This will account for a four Mt reduction and that is a good thing. Unfortunately, the Horgan government will not tell us how much per litre this new fuel standard — that is not currently used in any of the provinces or states that supply our gas — will cost us at the pump. This seems particularly hypocritical considering this government made a big show when it introduced gas price transparency legislation last fall.

When Clean BC received $900 million in funding in the last budget for its first three years, there was hope that the money would fund meaningful reductions. However, other than the rebate for electric vehicles, the vast majority of the money will not result in GHG reductions. In fact, most areas that reductions will be found — like the low carbon fuel standard — will come with an additional cost to you, the taxpayer.

The task of reducing our GHG footprint will take a huge effort on everyone’s part and will not be easy or cheap. However, it is important that the government be forthright and open to people about what the true cost of this new policy will be for B.C. residents and businesses alike.

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Editor’s Note: This opinion piece reflects the views of its author, and does not necessarily represent the views of CFJC Today or the Jim Pattison Broadcast Group.