‘It can no longer be free to pollute:’ Updated climate plan includes carbon tax hikes

But the plan’s centrepiece is an increase in the federal carbon price.

That price will continue to increase by $10 a tonne a year until it reaches $50 in 2022. Trudeau announced increases will carry on and get steeper after that — $15 a tonne per year.

By 2030, the price is to be $170 tonne — enough, say federal officials, to increase the price of gas at the pump by 27.6 cents a litre.

Trudeau said the tax will continue to be rebated and that most families should get more back than they pay.

“We are continuing to move forward and putting more money in the pockets of Canadian families by increasing the price on pollution.”

Trudeau took aim at provincial premiers such as Jason Kenney in Alberta and Scott Moe in Saskatchewan, who have challenged the constitutionality of a federal carbon tax.

“There are some places in this country that still want to make pollution free again,” he said. “We’re not going to do that.”

Federal Climate Change Minister Jonathan Wilkinson said discussions with the provinces and territories on the carbon price have already begun and will continue.

The Supreme Court is expected to rule in the new year on the provincial challenges to the carbon tax. Trudeau wouldn’t say how a provincial victory could affect the plan.

About $7 billion of the $15 billion in the plan had been previously announced for programs such homeowner retrofits, tree-planting, conservation and zero-emission vehicle rebates.

The biggest piece of what’s left — $3 billion — is to go to industry. Large industrial emitters will be able to apply for money for projects that either reduce emissions, bury them underground or offset them.

The industrial carbon tax is to rise along with the consumer price. But industries that compete internationally will continue to pay the levy only on emissions that exceed the average for their sector.

Municipalities are to receive $1.5 billion to improve the energy efficiency of buildings such as arenas and halls. Nearly $1 billion is to go to improving Canada’s electrical grid.

Remote communities are to get $300 million to reduce emissions from power generation.

The government plans to go ahead with regulatory proposals such as a clean fuel standard intended to reduce greenhouse gases from vehicle fuels. Also under consideration is some form of border tariff to protect Canadian industries from competition from jurisdictions with lower climate standards.

The Business Council of Canada welcomed the federal plan.

“Canada’s leading companies take seriously the need to fight climate change,” said president Goldy Hyder.

Conservative Party environment critic Dan Albas said the Liberals should have ensured the provinces were on-board before releasing the plan.

“The environment is an area of shared jurisdiction and Canada’s Conservatives will respect the jurisdiction of the provinces and territories by scrapping Trudeau’s carbon tax,” Albas said.

However, Conservative leader Erin O’Toole told a Quebec audience that his party will vote in favour of a Liberal bill requiring Canada to reach net-zero emissions by 2050.

Green party leader Annamie Paul welcomed the Liberal plan, but called the 30 per cent reduction target outdated. Jurisdictions such as the European Union are aiming at 55 per cent, she said.

She pointed to the Liberal government still funding fossil fuel developments such as the Trans Mountain pipeline expansion.

“We can’t have the government say on the one hand that they are climate warriors and on the other they don’t say anything about their continued investment in TMX and in fracking,” Paul said.

The plan got high marks from environmental think tanks.

“If they follow through with all this, that closes the gap between rhetoric and policy action,” said Dale Beugin of the Canadian Institute for Climate Choices.

He said the plan’s 10-year time frame gives businesses a clear picture of what’s ahead. “That creates incentives to create long-term investment.”

Isabelle Turcotte of the Pembina Institute warned that the plan requires industry as well as the provinces and territories to co-operate.

“It’s a call to collaboration. We need all provinces and the private sector to add to this.”

The proposed carbon price wouldn’t be the world’s highest, but it would be “really robust,” she said.

‘It can no longer be free to pollute:’ Updated climate plan includes carbon tax hikes

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