IISD Submission to the British Columbia Carbon Tax Review

The document evaluates the British Columbia carbon tax as an effective model for low-carbon development that has reduced emissions without hindering economic growth. It compares BC's approach with other Canadian provincial and federal strategies, highlighting a closing gap in carbon pricing across the country. The briefing identifies key risks to future success, including the expansion of the natural gas sector and the lack of carbon pricing in the United States. IISD recommends retaining the tax and considering integrated mitigation and adaptation strategies.

• The British Columbia carbon tax is an effective policy that has contributed to a 4.5 per cent reduction in provincial emissions between 2007 and 2010, while provincial GDP rose 4.4 per cent and population growth rose 5 per cent.
• IISD estimates that at a holding rate of $30 per tonne, the carbon tax could deliver approximately 3 megatonnes of annual emissions reductions by 2020, representing about 14 per cent of British Columbia's provincial target of 33 per cent below 2007 levels.
• While British Columbia's carbon tax was once a policy outlier, other Canadian jurisdictions have implemented various mitigation regimes, including Quebec's carbon tax and cap-and-trade system, Manitoba's coal emissions tax, and Alberta's system of intensity targets and offset credits.
• The expansion of the natural gas sector in British Columbia presents a dual challenge: it provides economic benefits and a 'bridging' fuel to replace coal or oil, but it will also cause a domestic increase in emissions during extraction, processing, and transport.
• A significant policy misalignment exists between British Columbia and the United States, as the lack of a carbon price in the Western U.S. (except California) creates a disadvantage for BC industry, particularly in the natural gas sector.
• IISD suggests that the provincial government consider rethinking quantity targets by using carbon pricing targets in industrial sectors or intensity targets in agricultural sectors instead of absolute emission reduction targets.

APA

Gass, P., & Sawyer, D. (2012). IISD Submission to the British Columbia Carbon Tax Review. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/bc_carbon_tax.pdf

Chicago

Gass, Philip, and Dave Sawyer. IISD Submission to the British Columbia Carbon Tax Review. International Institute for Sustainable Development, 2012. https://www.iisd.org/system/files/publications/bc_carbon_tax.pdf.

Wikipedia

{{cite report |last1=Gass |first1=Philip |last2=Sawyer |first2=Dave |title=IISD Submission to the British Columbia Carbon Tax Review |publisher=International Institute for Sustainable Development |date=August 2012 |url=https://www.iisd.org/system/files/publications/bc_carbon_tax.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{gass2012iisd, author = {Gass, Philip and Sawyer, Dave}, title = {{IISD Submission to the British Columbia Carbon Tax Review}}, institution = {International Institute for Sustainable Development}, year = {2012}, month = aug, url = {https://www.iisd.org/system/files/publications/bc_carbon_tax.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }