Alberta Sets Economy-Wide Carbon Tax, Caps Emissions for Tar Sands

The Canadian province of Alberta has announced a climate plan that includes an economy-wide carbon tax, sets emissions limits for the oil sands and phases out coal-generated electricity.

The plan also includes measures to improve energy efficiency, support clean technological innovations and reduce methane.

Under the climate plan, announced by premier Rachel Notley on Sunday, the Canadian province will phase out pollution created by burning coal and transition to more renewable energy and natural gas generation by 2030.

Two-thirds of coal-generated electricity will be replaced by renewables, primarily wind power. Renewable energy sources will comprise up to 30 percent of Alberta’s electricity production by 2030.

The plan also includes economy-wide carbon pricing, which Alberta will phase in over a two-year period, charging $20 per metric ton in January 2017 and $30 per metric ton in January 2018. This new carbon pricing program will cover 78 percent to 90 percent of emissions in the province, the government says.

Alberta will also set an overall oil sands emission limit of 100 megatonnes, with provisions for new upgrading and co-generation. Additionally, the government plans to implement a methane reduction strategy to reduce emissions by 45 percent from 2014 levels by 2025.

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