British Columbia to raise carbon tax by $5 annually, will be $50 a tonne by 2021

Green Party leader Andrew Weaver, left, shakes hand of John Horgan, BC NDP leader, at Monday press conference to announce Green support for NDP minority government. Carbon tax increase. Photo: CBC.

Tax rate on electricity reduced to 3.5% from 7%

The BC government announced effective April 1, 2018, the carbon tax rates are increased by $5 per tonne of carbon dioxide equivalent emissions until April 1, 2021 and rates are $50 per tonne, according to a press release.

Also announced was that the tax rate on electricity is reduced to 3.5 per cent from 7 per cent of the purchase price.

“Phasing out the provincial sales tax on clean electricity will help make B.C. businesses more competitive. It will also serve as an incentive to switch from fossil fuels to electricity, further cutting pollution and enhancing low-carbon competitive advantage,” said Dan Woynillowicz, policy director at Clean Energy Canada.

A 2015 study by Clean Energy Canada and Navius Research found that strong climate leadership would attract an additional $5 billion of renewable energy investment to B.C. over the coming decade.

It estimates that, with a well-designed clean growth and climate strategy, 270,000 jobs would be created in B.C. by 2025, including 210,000 jobs added in the knowledge and service sector, 35,000 in the resource sector and 29,000 in clean energy and technology.

“The growth of clean energy is also sparking increased demand for many of the metals and minerals produced in B.C. The creation of an Emerging Economy Task Force should help ensure B.C. businesses and British Columbians can capitalize on this opportunity,” said Woynillowicz.