NS wants to replace the “carbon exchange” for large industrial emitters
Participation in the province's new system would be mandatory for electricity utility Nova Scotia Power and cement company Lafarge, as these companies produce at least 50,000 tonnes of GHGs per year.
The Nova Scotia government is proposing a new plan to reduce greenhouse gas emissions that would replace the current “carbon exchange” for large industrial emitters.
Environment Minister Tim Halman said on Tuesday that changes to the Environment Act would instead create a pricing system based on the greenhouse gas (GHG) output of those companies that emit at least 50,000 tonnes of GHGs per year.
He added that this new program would also include targets and performance standards that will eventually be defined through regulations.
Minister Halman says the federal Department of the Environment has already given the green light to Nova Scotia's plan to replace its cap-and-trade system, which expires in the end of the year.
He indicated that this new system, which must still receive the approval of the federal cabinet, should come into force on January 1.
Nova Scotia submitted its new plan to the federal department in early September, which does not include a carbon tax. But the federal government could still impose this pricing on the province if it considers that the new strategy does not meet national targets.
Participation in the new provincial system would be mandatory for Nova Scotia Power and for the Lafarge cement plant, near Truro, because these two companies emit at least 50,000 tonnes of GHGs per year. Other companies below this large industrial emitter threshold would be free to join or not.