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Federal government rejects N.S. plan; carbon tax likely on the way

By Steve MacArthur Aug 30, 2022 | 11:12 AM

Source: Communications NS

Nova Scotia’s bid to avoid a carbon tax has been rejected by the federal government.

Environment Minister Stephen Guilbeault delivered the news in a letter to Premier Tim Houston on Monday.

Guilbault stated the plan does not meet guidelines or mention putting a price on carbon pollution.

“You are proposing to end Nova Scotia’s cap and trade system, with no replacement that would put a price on pollution.” Guilbault wrote in the letter.

Houston met with Guilbeault last week to present the plan his government had come up with calling it “Better Than A Carbon Tax”.

According to the province’s modelling, the tax would cost the average household $2,000 annually.

However, it’s believed it would generate $1-billion each year and increased costs to gas and power bills would be offset by rebate cheques.

Nova Scotia has been able to avoid the tax by implementing a cap and trade program on big polluters. It was ushered in by the previous Liberal government but a new plan is required and each province has until September 2 to come up with a plan that meets federal standards.

Liberals say PC’s “Fumbled

Liberal Leader Zach Churchill described Houston’s plan as a pitch consisting of a list of environmental targets with no details of how to achieve them and made no mention of carbon pricing.

“It was obvious when they made their announcement that Premier Houston was allowing a carbon tax to come to Nova Scotia when he submitted a faulty proposal to Ottawa,” says Liberal Leader Zach Churchill. “He knew what was at stake and he chose not to act. Now, Nova Scotians will be left to pay the price.”

Provinces such as Alberta, Saskatchewan, Manitoba and Ontario have been working with a carbon tax since 2019.

Guilbault has left the door open for further negotiations, but if it goes forward, the tax will come into effect next year.


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