So Trump thinks he can take advantage of countries like Canada that have committed to a price on carbon?
Boy, is he in for a surprise!
Even California is looking at steps to make sure that climate deniers in the USA can’t take advantage of the California carbon pricing scheme. The rest of the world will soon follow. Canada will, too. Here is how it works.
When Senator Wieckowsk’s bill is adopted, California will have Border Adjustment Taxes (BTAs). Basically, the state will say to everyone else, “If you don’t put a carbon tax on your goods, we will add the tax when they come into California.” That way, out-of-state companies won’t have an advantage when they try to sell in California. And California gets the carbon revenue. This is a pretty big threat: California’s market is 50 per cent bigger than Canada’s.
BTAs also go the other way: if another state doesn’t have a carbon tax, California will rebate their tax on carbon on California exports. This levels the playing field for California producers.
Mr. Trump doesn’t want to play ball with California or the rest of the world. California, Europe and the rest of the world are going to make sure climate deniers don't take advantage of countries and states that are doing the heavy lifting on climate change. Canada will have to introduce BTAs, too, and that is a good thing. It sends a message to the countries and states that think they can sit out the war on carbon.
It is ironic the Mr. Trump started talking about BTAs to protect American industry from more efficient producers. Now the idea is coming back to haunt him. BTAs will be used to protect the world from American stupidity.
David Robinson
Sudbury