Provincial Carbon Pricing Rescinded..What Does That Mean?

- by Don Stewart

In a recent announcement the Provincial Government has confirmed it is not moving ahead with the proposed $25 per tonne carbon tax. When Premier Brian Pallister was asked about the reversal he stated it was because Manitoba did not receive assurance from the Federal Government that it wouldn’t implement the federal backstop that would eventually bring the rate up to $50/tonne.

The MTA and It's members applaud and Provincial Government’s decision to scrap the Carbon Tax instead focusing on non-tax GHG reduction programming.

While the province won’t be implementing a carbon tax, it will still proceed with its Climate and Green Plan which outlines options to reduce carbon emissions. One of the options under consideration being the MTA’s trucking efficiency plan "The GrEEEner Trucking Fuel Efficiency Initiative”.

With the provincial carbon tax being rescinded members do need to be aware that federal carbon pricing is on the way instead. The federal government has clearly stated it will begin collecting a $20/tonne fee in January 2019 in any province that doesn’t have its own carbon tax structure in place. That fee will increase by $10 per year until it reaches $50/tonne. Outside of the obvious cost challenges, Ottawa has not been as clear on what it intends to do with the carbon tax revenue. While revenue will be returned to the province where it’s collected, it’s unknown at this time whether that will be through a direct payment to individuals, by flowing the money through the provincial government, or another option.

It is clear to the MTA that the Federal Government has, so far, decided to dig in on their support of an annually increasing carbon pricing system. Because of this, work continues to focus on the Provincial Government. The reception the MTA’s GrEEEner plan has received has been universally positive. Members can trust that MTA staff are diligently working to make this program a reality.

Trucking fuel efficiency is not only positive for our industry but those we serve. It also has the added bonus of GHG reductions within our sector. It is believed that work on this project will ultimately be successful, meaning our industry members can offset the cost increases of the federal carbon pricing program by participating in what we know will be a positive provincial initiative.

Members wanting more information on this issue or the GrEEEner Trucking Fuel Efficiency Initiative are encouraged to contact the MTA.

204 632-6600