[Section 15] Liberals to also Implement Cap-and-Trade

With all the focus on the Liberal's release of their new carbon tax shift policies, one could be forgiven to think that there's no intent by the Liberals to introduce a greenhouse gas cap-and-trade system in Canada, as pushed by the NDP and (sort of) by the Conservatives.

In fact, the plan is to get one rolling, but as it will take a few years to accomplish any significant emission reductions using cap-and-trade, the carbon tax shift is the logical one to implement first, as it is far easier to get up and running.

Yes, Jack Layton, you disagree. I know. But without the US having a cap-and-trade system in place (last week's attempt to legislate one failed), and with the EU's system still in some disarray (here and here), there's not yet much of a reliable international emissions market to plug into. Yes, I do think that the EU will succeed in implementing one.

The Liberal Green Shift plan can be read here (pdf).

Here's the relevant section (page 22), explaining that cap-and-trade is still in the works:

A year ago, the Liberal Party introduced the Carbon Budget, a strong cap-and-trade plan to put a price on carbon, boost green investment, and create a carbon market. A Liberal government will work with other jurisdictions, including the United States, to establish a solid cap-and-trade system as stronger carbon markets develop. We will continue to be guided by the principles of the Carbon Budget: absolute emission reductions, increased investment in green technology, and harnessing the power of the market to fight climate change.

However, more than two wasted years of Conservative government, combined with the message of urgency coming from scientists, means that we must put a price on carbon as soon as possible. Since a cap-and-trade system will take several years to build, we will start with a broad-based, revenue neutral carbon tax that can be implemented quickly and simply, that will cover approximately 75 per cent of domestic emissions.

So, cap-and-trade under the Liberals will be done as well.

The NDP are transfixed on only having a cap-and-trade system. That party needs to take a second look at a carbon tax shift. Social democrats in Europe have embraced it along with a cap-and-trade market. Why not the NDP?

The carbon tax shift is not about creating an alternative to cap-and-trade. It's about implementing a parallel policy that has the capacity to put more control over economic forces in people's hands. It's about kick starting industry to sooner adopt carbon emissions reduction strategies, which will only benefit Canada as it enters the emerging global carbon emissions trading market at a later date.

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Addendum:

The Conservatives, of course, favour a greenwashing system, which allows for emissions to actually increase -- the famous 'intensity targets', a PR spin first introduced by US Republican spin doctor Frank Lunzt. (Behind the link, you'll find him recanting his earlier 'work.') Until the Conservative recant intensity targets themselves, they have no substantial policy to add to the debate.

Muzzling Baird, or at least sending him to an anger management class, would be a decent start.

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Posted By Mark Francis to Section 15 at 6/20/2008 07:15:00 AM