Canada Carbon Price Plan and Its Impact on Several Industries

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Prime Minister Justin Trudeau answers a question during Question Period in the House of Commons in Ottawa on Monday, Oct.3, 2016. THE CANADIAN PRESS/Adrian Wyld

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Although it has not taken effect yet, several industries are now anticipating the negative impact that that carbon price plan will have on their businesses. Prime Minister Justin Trudeau proposed a minimum price which the Canadian business owners fear will affect their ability to compete in the international market.

Some of the sectors that could be affected are auto manufacturing, manufacturing/exporting, fuel refining, mining, and agriculture. The minimum carbon proposed priced is $10 a ton in 2018. This rate is still expected to increase by $10 per year until it reaches the rate of $50 per ton in 2022.

In the auto manufacturing sector, although truck and car plants do not create a lot of emissions, some fear that suppliers would likely pass the extra costs on them. Some people also worry that their jobs would end up in another country if these businesses choose to subcontract in places that do not impose this kind of tax. The manufacturing/exporting industry are concerned that that they will be left behind by those that are not covered by the same regulations. The fuel refineries in Saskatchewan, New Brunswick and Newfoundland would need to comply with the carbon price scheme is this is implemented and business owners are now expecting that customers will eventually end up purchasing fuel from international providers. Similarly, costs are also expected to increase in the mining and agricultural industries.

While the business owners and the public are already anticipating the worst, Trudeau on the other hand sees only gain. He expects that the tax will force businesses to think of ways on how they can reduce their carbon emission which would eventually be beneficial for all the citizens of Canada. The funds collected are supposed to be given back to the provinces but there is still no news on how the government plans to spend this.