BC has very deliberately put itself in a leadership position it its commitments to fight climate change but the government’s sincerity to meet its commitments is best demonstrated by how it allocates its spending and generates its revenues – the budget. It is one of government’s best tools for establishing a trajectory for our economy by implementing incentives and disincentives to achieve specific goals.

Other jurisdictions, particularly European countries, have successfully used fiscal tools to support citizens and businesses in reducing climate-changing emissions. These tools take a variety of forms but generally fall into four broad categories: direct investments in programs such as energy retrofit fee-bates; investment in green public infrastructure such as transit; fiscal tools such as a carbon tax; and public awareness campaigns.

Of all the available tools, a carbon tax has consistently provided some of the best impact. For example, Sweden implemented a modest carbon tax in 1991 that they credit with reducing emissions by 25% from what they otherwise would have been in that same time period. (Visit the Carbon Tax Centre for more information).