20 large Nova Scotia companies will face cap-and-trade regime

The McNeil government has introduced legislation to create a cap-and-trade system in Nova Scotia, but is not yet providing any information on what impact it might have on emission levels or what it might cost industries.

Nova Scotia Environment Minister Iain Rankin told reporters at Province House those details will come when his officials create the regulations to accompany the legislation.

"There's a requirement that all provinces have a carbon-pricing system in 2018," he said Friday at a bill briefing. "We intend to meet that commitment.

"We've had discussions with the federal government. They're onside with our cap-and-trade program."

Only 20 large companies will be required to participate in the system. They include Nova Scotia Power, the Lafarge cement plant in Brookfield, Irving and other gas importers, as well as natural gas distributors.

Under cap-and-trade system, a government sets a limit on the amount of greenhouse gas emissions for various industries. If a company wants to exceed its emissions limit, it must buy credits from those that burn less. 

The hope is that companies will want to avoid the additional cost and will cut emissions so they don't have to buy credits.

Carbon plan needed by 2018

Prime Minister Justin Trudeau announced last year that all provinces had until 2018 to adopt a carbon pricing scheme or the federal government would impose one on them.

Calling it a "made-in-Nova Scotia approach," Rankin refused to say where the province might consider setting the emissions cap. Nor would he guess at what price per tonne the province might actually place on carbon.

The Ecology Action Centre's Wayne Groszko, who was at the minister's briefing, said without those key pieces of information it is impossible to say if the system will accomplish its intended goal — lessening pollution.

"Every successful cap-and-trade regime has had an ambitious, low target so that it actually sets an incentive," he said. "We don't know if that's going to happen here."

Groszko is also critical of the government's plan to initially give away carbon credits rather than sell them to industries that pollute.

"They should be auctioning, in other words charging money for the permission to pollute," he said. "I think that only just makes sense."

Groszko said the province could then use that extra revenue "to soften the blow to people who really need it, low-income folks." 

He said that money could also go to help fund green projects or public transit to help lower emissions even more.