Ottawa approves Saskatchewan's industry carbon pricing plan

Saskatchewan's industry carbon pricing plan has been approved by the federal government.

The Saskatchewan Output-Based Performance Standards (OBPS) Program meets the requirements for the 2023-2030 federal carbon pricing benchmark, according to a news release from the Government of Saskatchewan.

The government claimed the plan will save Saskatchewan industry an estimated $3.7 billion in federal carbon taxes between 2023 and 2030.

“With industrial carbon pricing under provincial control… regulated emitters will receive credit for every tonne of carbon emissions under their permitted amount,” the release said.

The plan is set to include credit for carbon capture as well as utilization and storage.

According to the provincial government, regulated emitters will have the option to pay into the Saskatchewan Technology Fund.

The fund is meant to create incentives for industry to develop and implement technologies that contribute to the reduction of greenhouse gas emissions.

Minister of Environment Dana Skoropad reiterated that elements of the federal carbon tax will remain in Saskatchewan.

“The consumer carbon tax, that’s a separate entity, what we’re talking about is industry,” he said following Question Period on Tuesday.

Sectors including oil and gas, refining and upgrading, mining, manufacturing as well as processing are all set to fall under the umbrella of the provincial government’s plan.

This includes utility providers such as SaskEnergy and SaskPower.

When asked if there would be any potential fee reductions concerning heat and electricity bills for Saskatchewan residents following the introduction of the province’s plan, Minister Skoropad said he could not answer.

“That would be the prerogative of the Minister of SaskEnergy and SaskPower,” he told reporters on Tuesday.

As for producers in the province, the plan is set to “indirectly” benefit Saskatchewan farmers, according to Skoropad.

“There will be positive consequences of this program for agriculture. We’ve got processing facilities whether they be oil, seed or grain. They will stand to benefit from this,” he said.

“So indirectly agriculture [will benefit] but as far as on the farm, no. It does not fall under this particular program.”

For the official opposition, a Sask. made carbon plan is good news. However, questions remain unanswered for some following the plan’s approval.

“Its great to now have carbon tax dollars staying in Saskatchewan but there a lot of questions,” NDP MLA Aleana Young said.

Young called for more details regarding how the money collected from the province’s carbon plan will be spent and how the new program will affect or benefit Saskatchewan residents.

“If what this is going to result in is simply the same carbon tax now with half a billion dollars a year going to the provincial government instead of the federal government … Saskatchewan people and certainly myself as critic will have some follow up questions as details emerge,” she said.

According to Young, the funds being collected by the Government of Saskatchewan should be divided amongst affordability measures and innovation.

“I would hope that that money certainly goes to support emissions reductions from industry, from large fixed emitters but also goes to families to helping them in places like their utility bills and in places where affordability makes a big difference,” she said.

The Saskatchewan OBPS Program is set to take effect on Jan. 1, 2023.