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Carbon Pricing Policy

Ms Blakeman: Thank you very much, Mr. Speaker. In 2007 the government commissioned the Joucard report which modelled the effect carbon charges would have on reducing greenhouse gas emissions. Although the minister adopted some of the recommendations, they were watered down to such an extent that many questioned whether success was possible. The Auditor General warned that without a plan “Alberta can spend a lot of money but not achieve emissions [intensity] targets.” To the Minister of Environment: how much money is the minister willing to risk for a strategy that is more about PR than about climate change?

Mr. Renner: Well, Mr. Speaker, the issue of climate change and greenhouse gas reductions is very much part of the discussions that are currently under way not only here in Alberta but nationally and internationally. With the advent of the Obama administration south the Canada US border, we’re now starting to get to a point where, I believe, we are truly going to be able to see some significant and real progress because Alberta will no longer be acting alone but will be acting in concert with all of the rest of North America.

The Speaker: The hon. member.

Ms Blakeman: Thank you. To the same minister: why has the minister set emission intensity targets without a real plan to achieve them?

Mr. Renner: Well, Mr. Speaker, I really differ with the suggestion that there is no plan to achieve targets. The fact of the matter is that we have legislation in place, and we are achieving those targets. There are compliance mechanisms that are the law in Alberta. One is to have reductions of intensity, real reductions in CO2. Two is to have an Alberta-based offset. Three is to invest in the technology that will lead to large, grand-scale reductions, through implementation of technology such as CCS.

The Speaker: The hon. member.

Ms Blakeman: Thank you. Again to the same minister: given that the Minister of Environment has admitted that the carbon charge is too low, can the minister tell us if this administration will adjust the charge by a larger amount now or whether it will be following B.C.’s lead in instituting smaller yearly increases?

Mr. Renner:Mr. Speaker, the price for carbon, the compliance mechanism, the contribution to the technology fund is set at $15 a tonne as we speak. There is no reason for us to believe that it will not increase over time. We also believe very firmly that there is that balance that needs to be maintained between economic activity and environmental protection. That balance is based upon ensuring that we don’t get so far ahead of our competitors that we cease to do business at all. The fact is that as the rest of North America comes onside – and I have every reason to believe that they will – I fully expect that $15 price to rise quite considerably.