Sask.'s industrial carbon levy program provides little public transparency: auditor

Saskatchewan's auditor says the province's carbon levy program for industrial emitters lacks public transparency, with no information on whether it's helping reduce emissions or providing economic spinoffs.

The report tabled Wednesday by Tara Clemett recommends the Environment Ministry beef up reporting to know if the program is working.

"Is the program actually reducing emissions intensity? Is it enough? Is the program saving industrial emitters money? And by how much?" Clemett told a news conference.

"Public reporting on performance measures helps the public hold the government accountable for achieving the expected program results."

The report says the province has yet to fund any technologies to reduce emissions since it began collecting dollars from heavy emitters in 2019.

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"Would I envision much has changed from the emissions standpoint at this point? No," Clemett said.

Saskatchewan's program requires emitters to pay a carbon levy to the province if they go above emissions thresholds. Nearly half the emitters have exceeded their limits.

The government forecasts it will collect $121 million in levies this year. It spent $4.4 million last year on initiatives related to climate change.

Clemett said the money remains in the province's technology fund, collecting interest.

She also recommends the province consider making emitters pay sooner. Industrial polluters don't have to pay until more than one year after it's determined they went above their threshold.

The province said in an emailed statement it understands there are concerns around timelines and the progression of the technology fund.

It said it will "continue to ensure flexibility and regulatory certainty" for industries in Saskatchewan.

The Opposition NDP said Wednesday the "massive pile of money" in the technology fund speaks to the Saskatchewan Party government's mismanagement.

Finance critic Trent Wotherspoon called it "hypocritical."

"The government has its own carbon tax, and they're sitting on all the money," he said.

"Industry paying into this should deserve a clear understanding on how to receive some portion of those dollars to reduce those emissions and make their operations more efficient. That's not happening."

The province has stopped paying Ottawa the consumer carbon levy on natural gas, which the federal government is responsible for administering.

Premier Scott Moe has said the move, which breaks federal law, is fair because Prime Minister Justin Trudeau has exempted the users of home-heating oil from paying it.

Moe has also said the Canada Revenue Agency plans to audit the province for not remitting those levies.

-- This report by The Canadian Press was first published June 5, 2024.