You might remember I posted a few concerns that I had with the new green shift proposal made by Dion Liberals. Well, I just got a response to those questions from a Mississauga-Erindale Member of Parliament, Omar Alghabra. Since he was kind enough to answer my questions, I’ve agreed to post his response unedited:
Q 1. By how much are carbon taxes going to reduce emissions? (carbon taxes alone please)
Mr. Alghabra: In order to level the competitive field with alternative energy sources, carbon emissions must be priced. Otherwise, fossil fuels will continue to receive indirect subisdies by not fully accounting for their cost. That way, alternative energy sources could become competitive and offer economical options. Industrial and consumer wastes are always costed. Plants take into account the cost to dispose of their waste. The green shift plan is committed to 20% reduction of emissions by 2020 (1990 baseline) and carbon pricing is an essential way to reach that target. It places a cost of causing emissions which will compel companies and consumers to be economical in producing carbon. It will also make non-fossil fuels attractive and viable. Our dependency on oil is unhealthy for the environment and unsustainable for the economy as oil becomes more expensive and supply becomes limitted.
PS: There is no environmental plan to curb emissions that doesn’t include putting a price on carbon. Ours is unique in the fact that it is the only plan that offers offsets and helps Canadians and businesses adjust.
Q 2. Who do you expect to actually pay the tax? (Big polluters or consumers)
Mr. Alghabra: The tax is being shifted onto corporations at the wholesale level. Consumers will not be paying them. But it would be misleading if we ignored the fact that most corporations will transfer most of these costs onto the consumer. It is applied uniformally and fairly on all carbon emitters
Q 3. If the green party hasn’t had much success with carbon taxes, do you think Liberals can win based on this plan? And why now considering Economic slowdown and rising energy costs?
Mr. Alghabra: The Green party is a single issue party that propose impractical policies. They want to impose greater price on carbon and less tax reductions. The Liberals will offer a comprehensive platform that will address social, economica and environmental issue in a pragmatic and wise approach. It is because of rising oil prices that we need to do something to begin our transition away from oil. This plan will enable us to finance overhauling our economy, reduce our taxes, invest in new technology and create new jobs. The 21st century needs a new approach, otherwise we will be dragged into it as laggards.
Q 4. Can we expect a cap-and-trade plan that will be modified to work with carbon taxes?
Mr. Alghabra: A cap and trade system is part of our plan. It is a compliment that will become an eventuality once a market for carbon has been established. A cap and trade system could not be established immediately, that’s why Quebec and Ontario committed to one but clearly said that it will take time and that they couldn’t establish it now.
Like I said above, there are many legitimate and fair questions about this plan. The reality is that we MUST do something. Doing nothing is not an option. As we contemplate what the right approach is, there will be resistors who will be quick to tear it down and claim that it wont work no matter how smart the plan is. Those are the same people that have resisted change in the past and will resist change in the future. We can’t be paralyzed by second guessers. We need to be thoughtfull and deliberate in our approach but we can’t remain stationary. This plan is powerful and simple. It penalizes pulloting but offers offsets for Canadians to cope. In fact, if Canadians begin to find ways to reduce their carbon emissions, the value of their tax cuts would be increased, because not only will they benefit from the cuts, but they will be paying less of carbon penalties.
Stephen Harper will yell and scream, but we shouldn’t be surprised. He was a climate change denier, then he resisted Koyoto and now he is defending big oil vigoursly. If it wasn’t for him and people like him we would’ve been much more advanced in our fight against climate change


















