N.S. Liberal leader sheds light on new N.B. premier's carbon tax plans

It took a campaign promise by Nova Scotia's Liberal leader on Monday to shed new light on how New Brunswick Premier Susan Holt may try to replace the federal carbon tax.

Holt was vague during her recent election campaign about exactly what she would propose to Ottawa that complies with the national pricing standard while removing the tax consumers pay at gas stations.

But Nova Scotia Liberal Leader Zach Churchill said Monday morning that he and Holt have discussed an Atlantic Canada-wide cap-and-trade system similar to the one in Quebec.

"I have talked to Premier Holt," he told a news conference.

"She agrees with this plan and we think we can convince other provinces to work with us on a made-in-Atlantic-Canada solution to carbon pricing that will take the price off the pumps and that actually meets the federal legislative framework."

Churchill made the comments while announcing his party's platform for the Nov. 26 Nova Scotia election.

Holt was considerably cagier when she rolled out her platform on Oct. 3.

She said at the time she wanted a more "robust" carbon price on large industrial emitters, coupled with federal recognition that many New Brunswickers don't have transportation options and must drive vehicles and buy gas that is subject to the tax.

"That's a conversation that we'll need to have with Ottawa," she told reporters.

"We're going to go to Ottawa with a clear ask of what we want our industrial price to be, what we're looking to do toincentivize and support New Brunswickers to change their behaviour and I am expecting a willingness to have the conversation from the federal government."

Holt did not mention a cap-and-trade system.

The new premier spent most of Monday in the first meeting of her cabinet.

WATCH | 'I have talked to Premier Holt,' says N.S. Liberal leader on regional plan:

Hints of a Holt carbon tax plan from Nova Scotia

16 hours ago

Duration 1:46

Nova Scotias Liberal leader reveals details of his discussions with New Brunswicks premier about carbon pricing.

Her spokesperson Katie Beers said Holt spoke to Churchill Sunday night and said she was "open to the idea but there are many details to figure out.

"We are working with the department now to get a better idea of what this solution could look like," Beers wrote.

The federal carbon tax adds 17.6 cents per litre of regular gasoline this year.

A cap-and-trade system establishes an emissions limit and forces industrial polluters who exceed it to buy credits credits that are earned by the emitters who stay below the cap, and that can be traded in a trading market.

It's one form of carbon pricing that attaches a cost to emissions to create incentives to lower them.

New Brunswick already has a credit-based pricing system on industrial emitters, but it only covers a small portion of emissions and has been criticized by the Green Party and some environmentalists as too weak.

More N.B. emitters above than below limit

Figures released earlier this year by the province showed that so far, there are more big emitters exceeding the limits than staying below them.

Data provided by the Department of Environment and Climate Change showed the province's 15 largest emitters of greenhouse gases bought almost 10 times as many emissions credits as they earned in 2022.

Experts said at the time that the regime was still new and it was too early to conclude it was too lenient.

Greens suggest joining Quebec

The New Brunswick Green Party's election platform called for the province to join Quebec's cap-and-trade market.

Leader David Coon said Monday he'll encourage Holt to go that route and was happy to see Churchill adopt the idea.

Holt "should have been clear when she was campaigning, as I was," he said.

Churchill said Monday Atlantic Canada has "a real opportunity here" if he wins Nova Scotia's election to get an agreement among the region's four premiers on a stronger cap-and-trade system.

But he has been lagging far behind Nova Scotia PC Leader Tim Houston in polls.

Houston opposes the federal carbon tax and has argued that other emissions measures adopted by his government should be enough to satisfy the federal government.