What is a Carbon Tax and Emissions (GHG) – March 2017By: Paul Young, CPA, CGADate: March 20, 2017

Paul Young, CPA, CGA

CPA, CGA 26+ years of business experience

Financial Analysis and Reporting Business Improvements Audit and Internal Controls Costing Risk Management

10+ years of analyzing government policies 10+ years in academia

Public Finance (PF1) Advance Management Information Systems (MS2) Advance Accounting (FA4) Advance Finance (FN2)

Agenda

What is a carbon Tax? Do Carbon Tax reduce emissions? Truth about British Colombia Carbon Tax

Key quotes on carbon tax and emissions Is climate change real? What you need to know? Prime Minister Trudeau calls it a tax Where has raising taxes grown an economy? Other links

What is a carbon Tax

A carbon tax is usually defined as a tax based on greenhouse gas emissions (GHG) generated from burning fuels. It puts a price on each tonne of GHG emitted, sending a price signal that will, over time, elicit a powerful market response across the entire economy, resulting in reduced emissions. It has the advantage of providing an incentive without favouring any one way of reducing emissions over another. By reducing fuel consumption, increasing fuel efficiency, using cleaner fuels and adopting new technology, businesses and individuals can reduce the amount they pay in carbon tax, or even offset it altogether. Source: http://www.fin.gov.bc.ca/tbs/tp/climate/A1.htm

Carbon Tax and Emissions

Key Quotes “The reality is that since 2010, B.C.'s GHG emissions have increased every year; as of 2013 they are up 4.3 per cent above 2010 levels," Lee writes on the CCPA website.” http://thetyee.ca/Opinion/2016/03/08/BC-Carbon-Tax-Failure/

Key Quote: “The bigger story is technological change, notably the U.S. shift from coal to natural gas resulting from the fracking revolution that lowered greenhouse gas emissions without a formal government policy. However, since technological change is impossible to forecast, economists play with relative prices” http://business.financialpost.com/fp-comment/the-carbon-tax-illogic

Key Quote “ climate leadership team concluded the province will fail to meet its 2020 targets and recommends focusing emission-reduction targets for 2030 and 2050” . http://www.huffingtonpost.ca/2015/11/27/b-c-climate-report-says-hike-carbon-tax-extend-reduction-targets-to-2050_n_8667432.html

Emissions

Country Emissions / world %

Cap and Trade/Carbon Pricing

China 28% No Carbon Tax or Cap and Trade

United States 16% • Many states have cap and trade or carbon pricing

• No national carbon tax or cap and trade system

EU-28 10% • Various cap and trade systems and carbon taxation

India 6% • No cap and trade or carbon taxation

Russia 6% • No cap and trade or carbon taxation

Japan 4% • Cap and TradeTop 6 70% Rest of the world 30%

Carbon Pricing

Electrical Grid

World will blow through Two Degree CO2 and have to look at Geoengineering even if all electricity went solar and all cars are electric – Next Big Future – March 19, 2017

California Auction

Climate change

http://www.sciencemag.org/news/2016/05/earth-s-climate-may-not-warm-quickly-expected-suggest-new-cloud-studies

Carbon Tax / BC - Truths

Carbon Tax drives up costs for consumers including heating and food. The whole supply chain would pass the cost of the carbon to end consumer. 2/3 of a country’s economy is driven by consumer spending.

Source: Economic impact -

http://behindthenumbers.ca/2016/03/03/dont-believe-the-hype-on-bcs-carbon-tax/ GDP Growth is not strong -

http://www.rbc.com/economics/economic-reports/pdf/provincial-forecasts/provfcst-sep2016.pdf. BC is growing at 3% which is good growth, but hardly strong growth.

Consumer prices - http://www.cbc.ca/news/business/carbon-price-consumer-impact-1.3789224 or http://www.slideshare.net/paulyoungcga/carbon-tax-or-carbon-pricing-impact-on-consumer-good-prices-for-canada

Carbon Tax/Emissions - http://www.slideshare.net/paulyoungcga/climate-change-policies-cap-and-trade-emissions-carbon-tax-carbon-pricing-canada

LNG - http://www.slideshare.net/paulyoungcga/policy-liquefied-natural-gas-lng-canada - http://www.cbc.ca/news/canada/british-columbia/carbon-tax-lng-1.3355429

Is climate change real?

You can put 20 climate change experts in a room and get 20 different answers. Source:

http://www.naturalnews.com/052317_climate_change_scientific_consensus_fraudulent_science_survey.html http://www.nationalobserver.com/2016/03/02/news/trudeau-says-pipelines-will-pay-canadas-transition-gree

n-economy or http://www.bloombergview.com/articles/2016-03-16/canada-s-new-hope

LNG - https://www.youtube.com/watch?v=4IX_iGZgSBI Trade - https://www.youtube.com/watch?v=nEw49MdPK24 -

http://business.financialpost.com/fp-comment/canada-may-already-be-carbon-neutral-so-why-are-we-keeping-it-a-secret

http://www.slideshare.net/paulyoungcga/clean-technology-raw-materials-and-commercialization-market-canada-may-2016

http://www.slideshare.net/paulyoungcga/carbon-tax-or-carbon-pricing-impact-on-consumer-good-prices-for-canada

Climate Change/GHG - https://www.youtube.com/watch?v=gMvCb-pWJsk Impact on future Generation: https://www.youtube.com/watch?v=q7BHdWh9mjg Import/Emissions - https://www.youtube.com/watch?v=KokVHjT9PqE Carbon Taxation: - https://www.youtube.com/watch?v=KHglhOPtmrc Australia - https://www.youtube.com/watch?v=C35pasCr6KI Greenpeace - https://www.youtube.com/watch?v=cA6WZ4SX_-0 Agenda 21 - https://www.youtube.com/results?search_query=un+agenda+21+ Mike Bloomberg -

http://www.bloomberg.org/press/releases/bloomberg-philanthropies-partners-launch-new-clean-energy-initiative-limit-carbon-pollution-power-plants-spur-clean-energy-investments

What do people need know?

People need to do their own research and not take either left wing or right wing views

People need to do their part help environment including water, land management, recycling, etc

CO2 is key to plant life CO2 is not a pollutant Environmental

Air quality (poor scrubbing) Water (failures to treat water) Land Management (arsenic, tailing ponds)

Planets go through their own development process based on age of their planet as well as lifecycle of the sun

Cap and Trade systems have been a failure There is no such a revenue neutral tax

Where does raising taxes actually grow an economy

Stuart Varney conversation with socialist - https://www.youtube.com/watch?v=hWarBMfshaA

Carbon taxation will not grow an economy, but will hurt it!

Prime Minster Trudeau calling the carbon price a tax

Prime Minister Trudeau called the price for carbon a tax - https://www.youtube.com/watch?v=5ndd3YKEBxM

Government / Canada

https://www.youtube.com/watch?v=jW9GiWeQEgg

So, it is $1B cost a year for natural disasters? 

https://www.slideshare.net/paulyoungcga/what-is-carbon-tax-or-a-price-for-carbon

What triggers floods? Snow/rain, right? So, if we are warming up does not mean less rain?

Many forest fires are either started by lighting or are man made? In fact provincial governments have scale back their forest management budgets - http://calgaryherald.com/news/politics/did-cuts-to-fire-program-budget-have-a-role-to-play-in-fort-mcmurray-fire or http://www.cbc.ca/news/canada/sudbury/ontario-government-sues-cn-rail-for-millions-in-firefighting-costs-1.2927083 or https://www.policyalternatives.ca/sites/default/files/uploads/publications/BC%20Office/2010/12/CCPA_BTN_forest_service_web.pdf

Other links http://www.slideshare.net/paulyoungcga/climate-chan

ge-policies-cap-and-trade-emissions-carbon-tax-carbon-pricing-canada

http://www.slideshare.net/paulyoungcga/impact-of-climate-change-on-future-generations

http://www.slideshare.net/paulyoungcga/paris-climate-change-agreement-april-2016

http://www.slideshare.net/paulyoungcga/cap-and-trade-emissions-carbon-tax-or-carbon-pricing-101