UPDATE – SK: Saskatchewan’s plan on carbon tax rejected by the feds

After losing a constitutional challenge opposing the federal government’s carbon tax in May 2021, Saskatchewan submitted a provincial plan to price greenhouse gas emissions. The province asked the Ministry of Environment and Climate Change Canada to accept its proposed carbon tax plan, with the intention to implement it next spring.

Unfortunately, the federal government rejected Saskatchewan’s plan. This means there will be no provincial carbon pricing system until at least January 2023, when a more stringent benchmark imposing minimum national standards comes into effect.

Saskatchewan’s submission, dated May 3, looked similar to the federal tax on fuel and the carbon tax plan approved for the province of New Brunswick. The New Brunswick plan complies with the federal government's plan for a 6.6-cent-per-litre levy at the pumps; it also slashed its gas tax by more than four cents, leaving consumers with a net cost of two cents per litre.

The Saskatchewan plan also would have extended an existing provincial system for trade-exposed industries to natural gas distribution and power generation. It aimed to provide “flexible compliance options” including through payments to a technology fund or through carbon offsets.

The Saskatchewan government is currently evaluating its options to rebut the federal response. The CPA will continue to monitor the situation and report any developments to members.