Manitoba premier says he'll take up PM's challenge to find carbon tax alternative

Manitoba Premier Wab Kinew says he'll take up the prime minister's challenge to provinces that oppose the federal carbon tax to come up with a credible alternative. 

In an interview with CBC chief political correspondent Rosemary Barton, Kinew said his government will make the case that Manitoba does not need the federal backstop. 

"Manitoba has a really strong case to make that we've got a very credible path to net zero," he said in the interview, which aired Sunday on Rosemary Barton Live. 

Kinew said Manitoba has already "effectively decarbonized our electricity" thanks to investments in the province's hydro grid over the past 50 years. In addition, he said new measures in his government's upcoming budget, to be released Tuesday, will put Manitoba on track to meet the zero-emissions target without the consumer-facing federal tax. 

"Governments like ours that are committed to solving the climate crisis, at least doing our part, we have to show that we're going to be flexible, we're going to keep life affordable," he said.

The Manitoba government confirmed on Thursday that it would be putting forward a proposal to exempt the province from the federal carbon tax. At a news conference in Toronto on Saturday, federal Finance Minister Chrystia Freeland welcomed the development. 

"Where provinces and territories are interested in and are prepared to come forward with their own provincial or territorial plans to put a price on pollution, we are very, very keen to work with them," she said. 

In a letter Tuesday, Prime Minister Justin Trudeau challenged premiers who oppose the carbon tax to come up with their own approach to pricing carbon. The letter came in response to calls from seven of Canada's premiers to pause the tax increase, set to take effect Monday. 

Canada's per-tonne price on carbon is scheduled to increase from $65 to $80 on Monday. 

The hike will add 3.3 cents to a litre of gasoline and 2.9 cents to a cubic metre of natural gas. The carbon rebates sent to households every three months are also being increased. 

The federal "backstop" carbon price is imposed by Ottawa on provinces that have not developed a carbon pricing plan of their own that meets or exceeds the federal one. 

The policy, which was introduced by the Liberal government in 2019, includes both a tax on fossil fuels and rebates paid directly to households. It's designed as a financial incentive to encourage people and businesses to cut their consumption of fossil fuels and transition to greener forms of energy.

Canadians living in the eight provinces where the federal carbon tax applies receive quarterly rebate payments, which vary depending on the province and the size of their household.

Quebec, British Columbia and the Northwest Territories all have their own systems and are not subject to the federal tax.