Tax Reductions, Funded by a Revenue Neutral Carbon Tax

Climate change is one of the greatest challenges of our generation. From devastating storms and warmer winters to longer summer droughts and forest fires, the impacts are being felt right here in British Columbia. The consequences of climate change such as the mountain pine beetle epidemic are changing our environment, our economy and our communities.

In November 2007, the Intergovernmental Panel on Climate Change - representing the most respected climate experts worldwide - issued a report with the most decisive evidence yet showing that Earth’s climate is changing because of human activities. The effects will continue to worsen if no action is taken.

That is why the B.C. Government has taken action by introducing the revenue neutral carbon tax. By law, government must show how all of the carbon tax revenue flows back to individuals and businesses as tax reductions. To ensure this occurs, by law the government must table in the Legislature an annual plan that clearly outlines how every cent of carbon tax revenue will be returned to taxpayers in tax reductions.

It's estimated that B.C.'s carbon tax could reduce emissions in 2020 by up to three million tonnes of CO2e emissions annually, which is equal to taking almost 800,000 cars off the road each year. The tax on carbon emission is a critical component of B.C.’s Climate Action Plan to reduce greenhouse gas emissions by 33 per cent by 2020.