Sask. premier 'baffled' over rejection of provincial carbon pricing plan

REGINA -

Saskatchewan may take legal action against Ottawa once again, following the rejection of its provincial carbon pricing plan.

Speaking to reporters Tuesday Saskatchewan Premier Scott Moe said he believed his government's plan would be of increased benefit to Saskatchewan families and industries while exceeding the federal minimum standard. He said he may seek court direction for finding a path forward.

“We don’t see a reason why they wouldn't accept Saskatchewan’s plan as it exceeds the minimum standard, that is the strength of the Supreme Court ruling,” Moe said.

According to Moe, his plan offers a higher minimum standard than what is in operation in New Brunswick, which was accepted by the federal government in 2019.

“[The Supreme Court] didn’t say that the federal government could do one plan in this province and a different plan in that province. It said that there is a minimum backstop that the federal government could put in place which is why exceeded that backstop with this proposal,” Moe said.

The premier committed to developing a carbon tax framework for Saskatchewan following a Supreme Court decision earlier this year where — along with Alberta and Ontario — the province came out on the losing end of a years-long fight with Ottawa.

Saskatchewan will not be able to make another submission until 2023.

Moe said his government is working closely with agriculture and fossil-fuel industries to create a “reputable carbon credit offset system.” He’s concerned the rejection of the province's proposal will hinder the progress of the offset system.

The Saskatchewan plan included a carbon offset program for heavy emitters, a focus on developing small nuclear reactors and a carbon price on fuel with a portion rebated at the pumps.

The immediate fuel rebate seemed to be the sticking point for the federal government.

Federal environment minister Jonathan Wilkinson believes a rebate at the pumps defeats the whole purpose of carbon pricing by failing to incentivize the adoption of more efficient behaviour. It was allowed in New Brunswick, but that could soon end.

In a statement, a representative for the Minister of the Environment and Climate Change said the federal government is still interested in working with the province.

“We are pleased to see Saskatchewan’s interest in developing a made-in-Saskatchewan pollution pricing plan, and remain open to conversations with Saskatchewan about what their system could look like going forward,” read the statement.

The federal carbon pricing program first came into force in 2019 and affects provinces with no carbon pricing mechanism in place or where the carbon pricing scheme does not meet federal benchmarks.

With files from CTVNewsRegina.ca's Janelle Blakley.and Wayne Mantyka.