The Globe and Mail reported that the Alberta NDP plans to increase carbon fees and toughen its climate strategy, adding further pressure to an already struggling industry.
As quoted in the market news:
The province’s new NDP government on Thursday said carbon levies on major polluters would increase to $30 a tonne over two years, up from $15 a tonne under current regulations. The fee would rise to $20 a tonne starting Jan. 1 next year, and to $30 in 2017. Companies will also be required to reduce emissions by 20 per cent over time, compared with a 12-per-cent target today.
Alberta Environment Minister Shannon Phillips said the government would announce a review of the province’s complex royalty regime “shortly,” and that it would proceed in “lockstep” with the tougher environmental controls under development.
The prospect of more stringent rules and higher costs deepens a rift between a government that insists change is needed to smooth the way for stalled pipelines, and companies already reeling from the collapse in oil prices. The downturn has led to thousands of layoffs and dramatically shaved the industry’s long-term production outlook.