Skip to Content
Streetsblog USA home
Streetsblog USA home
Log In
Carbon Tax

Quebec Approves Carbon Tax on Fuels to Cut Greenhouse Gases

11:51 AM EDT on June 14, 2007

gas.jpg

Quebec will become the first Canadian province to impose a carbon tax on energy producers. Bloomberg reports:

The provincial cabinet approved the tax in Quebec City yesterday, according to a statement on the Natural Resources Ministry Web site. Refiners including Valero Energy Corp.'s Ultramar unit and Royal Dutch Shell Plc's Canadian unit will start paying a tax of 0.8 cent a liter on gasoline and 0.9 cent on diesel on Oct. 1. Power producers such as state-owned Hydro- Quebec and gas companies will also be taxed.

"Everyone is talking about the environment; everyone wants to play their part," Natural Resources Minister Claude Bechard told reporters in Quebec City yesterday. "Well, the oil companies too have to play their part."

The province will direct proceeds from the tax to a "green fund" that will invest in commuter rail networks and other forms of mass transit.

Bechard said he expects that the companies will absorb the higher costs, though he "can't guarantee" that producers and refiners won't pass them on to consumers. The tax is based on the "polluter pays" principle. "That is not negotiable," the minister said.

Charles Komanoff of the Carbon Tax Center (and Streetsblog), while hailing the tax as a positive step, notes that it's extremely small, equating to little more than 1% of the tax level that CTC proposes the U.S. phase in over a ten-year period.

Photo: _EM/Flickr

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Friday’s Headlines Are So Fresh and So Clean

The only thing Americans love more than a car is a clean car.

February 23, 2024

CalBike: Tell the Legislature Hands Off Active Transportation Funding

Calbike has an action alert that allows its members to write directly to legislators with their feelings on whether or not the ATP funding should be restored before the legislature votes on the budget in June.

February 22, 2024

Oakland Rips Out Protected Bike Lane on Embarcadero

The city and the councilmember who represents District 2 complain about lack of resources for safety projects, but somehow they have the resources to rip out protected bike lanes.

February 22, 2024

Talking Headways Podcast: The Annual Yonah Freemark Show, Part II

This week, let's talk about transit funding in general and the Roosevelt Boulevard subway in Philadelphia, specifically.

February 22, 2024

State DOTs Spend Even More Money on Highway Expansions Than We Thought

Advocates knew states would go on a highway widening binge when the Bipartisan Infrastructure Law passed — but they didn't know it would be quite this bad.

February 22, 2024
See all posts