In this section, you will learn about the following topics involved in putting a price on carbon:
- Why price carbon pollution?
- Cap & Trade system
- Carbon tax
- Revenue recycling
Click a topic to jump to a page with details.
There are basically two ways to put a more appropriate price on carbon: carbon tax or by implementing a cap and trade system.
Both methods generate revenue that can then be recycled to enable us to change our behaviour, technology, systems, and infrastructure so that we emit less greenhouse gases (GHG) every day.
On October 27, 2017 the Manitoba government announced their Made-in-Manitoba Climate and Green Plan. This plan includes a price on carbon pollution of $25 / tonne right away and remaining constant for 5-years.
This differs from the federal government‘s Pan-Canadian Framework on Clean Growth and Climate Change. The federal plan sets the price at $10 / tonne in 2018 and rising to $50 / tonne by 2022.
The following table shows the impact various carbon prices would have on the price of fossil fuels that Manitobans typically buy.
|Cost per tonne CO2e||Additional cost per litre gasoline||Additional cost per litre diesel fuel||Additional cost per m3 natural gas|
|$10||2.33 ¢/L||2.74 ¢/L||1.96 ¢/m3|
|$20||4.65 ¢/L||5.48 ¢/L||3.91 ¢/m3|
|$25||5.83 ¢/L||6.85 ¢/L||4.90 ¢/m3|
|$30||6.98 ¢/L||8.21 ¢/L||5.87 ¢/m3|
|$40||9.30 ¢/L||10.95 ¢/L||7.83 ¢/m3|
|$50||11.63 ¢/L||13.69 ¢/L||9.79 ¢/m3|
|$100||23.3 ¢/L||27.4 ¢/L||19.6 ¢/m3|
|$200||46.6 ¢/L||54.8 ¢/L||39.2 ¢/m3|