Andrew Scheer is facing questions over the conservative party’s climate change plans, which are being criticized for not being definitive.
Scheer says that his environmental plan will ensure that Canada meets its agreement on the Paris greenhouse gas emission targets. He also says that his platform will attract entrepreneurs and global innovators. The plan is to force major polluters to invest in green tech, leading to a surplus in innovation.
His plan calls for $2.5 billion in new spending on clean technology, with emphasis on incentivizing private-sector green investments through stringent emissions standards for industries that require investments in research and development.
Under the Paris targets, Canada commits to reducing its greenhouse gas emissions by 30 per cent by 2030 based on 2005 levels.
This is What Scheer Wants:
Scheer’s plans are heavily reliant upon a proposal to forego the carbon tax and implement a series of emission caps by the industry, which would require companies that emit over 40 kilotonnes per year to invest different amounts of money into green technology.
How Big Polluters Would Meet Those Investment Requirements:
Companies with big emissions can invest in subsidiaries of Canadian companies, calling them to do research and development on emissions-reducing technology. They can also call them to gather a pool of industrial research and development of green tech investments, as well as Canadian green bonds or financial tools that focus on emissions-reducing technologies.
They might also opt for investments in Canadian clean technology companies that have similar strategies for emission reductions, or invest in programs at Canadian colleges and Universities that are aiming to develop clean technology.
Potential Loop-Holes:
Critics of the Tory plan are pointing to some questionable stipulations. Determining whether businesses have already made investments in green technologies might mean that incentives aren’t driving them to spend more. Secondly, determining whether the investment is genuinely going to lead to reductions in greenhouse gas emissions is another concern.
The Conservative plan will require someone to regulate, inspect and verify the whole thing; meaning that they will be involved in determining the eligibility of green investments and issue a green investment certificate once an assessment is made to determine there is something in place to reduce emissions.
The Other Big Initiative:
The conservatives are also reviving the Green Homes Tax Credit, which was previously brought in by the Harper government. This pays homeowners 15 cents for every dollar they invest in green improvements in their home, rewarding them up to $20,000.
Credit Claims for Reductions Achieved in Other Countries for the Substitution of Canadian Technology:
The third part of the Conservative plan for climate change is to reward credits for investors who have managed to adopt their technologies in the third world via Canadian natural gas, instead of coal, for instance. Under certain conditions, the Paris agreement contains provisions that allow for international transfers of credit. But two countries can’t claim credit for the same reductions.
Carbon Tax Bottom Line:
Firms make investments that will potentially help them reduce their emissions so that the cost of their investment is equal to the tax they pay.
Related:
Trudeau’s Newest Emissions Targets In Line With Upcoming Election
