REGINA – The Government of Canada has approved Saskatchewan’s provincial plan to replace the federal carbon tax on industrial emitters with a Saskatchewan-based program.
The Saskatchewan Output-Based Performance Standards (OBPS) program goes into effect on Jan.1, 2023 and “meets the requirements for the 2023-2030 federal carbon pricing benchmark, including the addition of the electricity generation and natural gas transmission pipeline sectors,” a Saskatchewan government release stated.
It added industrial carbon taxes will now stay in Saskatchewan with an estimated $3.7 billion in federal carbon taxes saved between now and 2030 when compared to federal carbon pricing.
“This decision will not only contribute to ensuring that our Mosaic sites in Saskatchewan remain competitive around the world, but further supports our ESG commitments and continued role in helping to feed the world,” Mosaic director of regulatory affairs and sustainability Jessica Theriault said in a statement.
Mosaic Saskatchewan operates three potash mines across the province.
“This is not the time for federal climate policies that risk undermining our economic growth and prosperity. Our plan will allow industries to grow and operate sustainably while maintaining our economic competitiveness as a province,” provincial Environment Minister Dana Skoropad added.
Regulated emitters will receive credit for every tonne of carbon emissions under their permitted amount, creating incentives to reduce emissions, the release stated, adding the number of facilities in Saskatchewan’s OBPS program is expected to double by 2030.
The program will include credit for carbon capture, utilization and storage (CCUS) supporting the province’s CCUS strategy. Regulated emitters will have the option to pay into the Saskatchewan Technology Fund to “create incentives for industry to develop and implement technologies that contribute to meaningful reductions in greenhouse gas emissions intensity,” the release said.
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