EDMONTON, Alberta, Nov. 23 (UPI) -- A carbon-tax plan unveiled by the government of Alberta, Canada, received rare praise from both the oil industry and environmentalists.
Alberta's government announced plans to introduce an economy-wide tax on carbon emissions, starting in 2017 with a $20-per-ton tax. Emissions from the oil sands industry, considered by some to be one of the more potent polluters, will be capped at 100 megatons.
"We are going to write a made-in-Alberta policy that works for our province and our industries, and keeps our capital here in Alberta," Premier Rachel Notley said in a statement.
Alberta announced plans in June to double a tax on carbon under the authority of Notley, who is seen as an advocate for a low-carbon economy. The Canadian Association of Petroleum Producers criticized that plan, but said the industry could work collectively to develop the technology needed to ensure the economic vitality of the oil and gas sector in a low-carbon economy.
CAPP President and Chief Executive Officer Tim McMillan said he welcomed Notley's latest proposal while at the same advocating for a global presence for Canadian producers.
"We have the energy the world needs and we have environmental standards our customers expect," he said. "So let us – industry and governments – build on what's in place to ensure Canada can become a larger and leading supplier of responsibly produced energy to the world."
Most of Canada's energy exports head to U.S. market relying less on foreign reserves in part because of the shale oil and gas boom. The U.S. government recently refused a permit to pipeline company TransCanada to build its Keystone XL oil pipeline across the U.S.-Canadian border, citing environmental risks.
Under Notley's plan, Alberta will phase out coal-fired electricity and rely on renewable energy reserves to meet 30 percent of the provincial demand by 2030.
"This a game changer for Alberta and Canada," Karen Mahon, the director of the Canadian branch of ForestEthics, said in a statement.
