Liberals’ new power-plant rules leave electricity lobby feeling excluded
July 3, 2019
Canada’s electricity industry lobby group says it was left out of the federal government’s decision to crack down on carbon pollution from new power plants that use natural gas.
The comments came after Canada’s wind energy lobby group applauded the government last week for updating its rules to subject larger portions of pollution from new natural gas plants to the federal carbon pricing system in 2021 and beyond.
The federal government said June 28 that new natural gas plants built two years from now would have to pay for their emissions beyond an allowable cap of 370 tonnes of carbon dioxide equivalent. The cap declines each year until it hits zero in 2030, meaning the power plant would have to pay for all its emissions that year.
The decision is part of the Trudeau government’s Output-Based Pricing System, which allows heavy industry like cement factories, steel mills and oil and gas mining to pay the carbon price on only a portion of their pollution, saving them from the full impact of competition from foreign-based operations that are not subject to the levy.