Conservatives to reveal climate plan with a carbon tax ‘personal savings account’

The federal Conservatives are revealing their climate plan on Thursday and proposing a $20-per-tonne carbon price — lower than the Liberals'.

Conservative Leader Erin O'Toole is set to give further details later Thursday morning. The plan is a major shift in policy, as the party has previously threatened to scrap the program introduced by Prime Minister Justin Trudeau in 2018.

The 15-page document, obtained by The Canadian Press, proposed the carbon price at $20 per tonne, rising no higher than $50 per tonne.

Read more: How carbon pricing works across the country

The Tories would work with provinces to create a “Personal Low Carbon Savings Account.” This means Canadians would pay into their account each time they buy hydrocarbon-based fuel, and then use that money to pay for products to help them live a “greener life,” like a bike or bus pass.

The plan said the accounts would be managed by companies similar to how a debit-card system works.

“Even at this lower carbon price, we will ensure that this does not place an excessive burden on low-income Canadians and will protect farmers by ensuring that they have affordable options,” the plan reads.

The federal Liberals' carbon tax is currently at $40 per tonne, rising to $50 in 2022, and will keep rising until it hits $170 by 2030. This only applies in provinces that have not set up their own carbon pricing system.

Under this policy, 90 per cent of the revenue is returned to Canadians through a rebate. The remaining 10 per cent is handed out to small and medium-sized businesses, schools, hospitals and organizations that can’t pass on their costs from the carbon tax directly to consumers.

Tories have been opposed to carbon tax

The Tories have previously very opposed to the national carbon price.

Last month, after years of disputes between some provinces and the federal government over carbon pricing, the Supreme Court of Canada ruled that the federal government has the constitutional right to impose a carbon price on the provinces.

After the decision, O’Toole said his party, should it form government, plans to repeal the carbon pricing plan.

Read more: The carbon tax is going up. Here's how much more you could pay at the pumps

“Canada’s Conservatives will repeal Justin Trudeau’s Carbon Tax,”; O’Toole said in a statement.

“The Supreme Court highlighted the risk of carbon leakage between provinces. The same risk of leakage of jobs and investment exists between Canada and the United States.”;

— With files from The Canadian Press