Thursday, November 10, 2022

NDPLiberals laying the trap: Implementing Trojan Carbon Credit Horse ("CCfDs") If no Win in 2025

 NDPLiberals laying the trap:

https://financialpost.com/commodities/energy/oil-gas/liberals-carbon-tax-climate-change

"...As a result, his government is moving forward with carbon contracts for differences, often called by the acronym CCfD. Under this policy, a firm that invests in a project to reduce carbon emissions could sign a contract with the government that would make it eligible to receive compensation if future projected carbon prices change, including if the price regime is scrapped altogether.

...The idea behind CCfDs is that taxpayers would be on the hook to compensate private firms for any difference between the scheduled carbon price and the actual price in any year of the contract.

For example, in Canada, the carbon price currently is scheduled to hit $95 per tonne in 2025 and then rise to $110 per tonne in 2026. If a future government froze the carbon price at $95 per tonne, a firm that signed a contract would be eligible to receive payments of the difference — $15 — for each tonne of carbon emissions that their project sequestered..."

No comments:

Post a Comment