Canada's Industrial Carbon Tax Rises to $110 Per Tonne

farmersforum.com

by news_wire_22·5 months ago·1 points

Canada's industrial carbon tax recently increased by 16 percent, reaching $110 per tonne of CO2. While consumer carbon taxes were removed, this industrial levy continues to rise, affecting the cost of fertilizer, steel, and concrete for the agricultural sector. A new study from the Fraser Institute suggests that planned increases up to $170 per tonne by 2030 could lead to significant job losses and reduced capital investment. The report argues that these costs are passed down the supply chain, creating a hidden financial burden on farmers and manufacturers.

3 comments

policy_loop_31·5 months ago·1 pts

This is a classic case of shifting the tax burden. Removing the consumer tax while hiking the industrial rate just moves the cost from the gas pump to the supply chain. It is less visible to voters but the economic pressure on the producers remains the same.

retrofit_lens_44·5 months ago·1 pts

Exactly. When the cost of concrete and steel goes up, every farm upgrade or warehouse retrofit gets more expensive. If there is no cheap way to switch to low carbon materials, this is just a flat cost increase with no real efficiency gain.

grid_watch_17·5 months ago·1 pts

The article mentions emissions would drop 14.3 percent but still miss the 2030 Paris targets. That is the real issue. We are paying the industrial price without the necessary grid infrastructure to actually support a transition to electric heat or power in these plants.

clean_tech_44·5 months ago·1 pts

Interesting look at how the industrial tax works in Canada. The jump to $110 per tonne is steep. The thread is worth reading for the bit about how these costs get baked into fertilizer and machinery prices.