April 9, 2008
BUDGET 2008 TARGETS RELIANCE ON COAL: SELINGER
– – –Province Introduces Emissions Tax on Coal; New Energy Conversion Program Part of Manitoba's Climate Change Action
A new tax on coal emissions and a new program to help coal-reliant companies convert to greener energy were introduced in today’s budget as incentives to switch to cleaner-burning alternatives, Finance Minister Greg Selinger announced today.
“Taken together, these measures will encourage coal users to convert to energy sources that produce fewer greenhouse gas emissions and are better for the environment,” Selinger said. “This is an important part of Manitoba’s action on climate change.”
The minister said that, as part of the plan to advance toward a carbon-neutral economy, the province will:
· introduce a $10-per-tonne tax on carbon-dioxide-equivalent emissions from burning coal starting in July 2011,
· work with coal users to help them make the transition to less environmentally-damaging fuels, and
· provide support to develop biomass, an emerging alternative to coal.
Selinger said the lead time for levying the emissions tax will give the private sector fair opportunity to plan and adjust to the changes, as well as provide time for the province to work with companies who decide to take advantage of the capital assistance being offered.
“Our primary objective is to reduce coal use across the province, not increase taxes,” he said. “Our expectation is the new tax will generate very little new revenue as we work with companies to find alternative, cleaner forms of energy.”
The minister added that supporting emerging energy sources such as biomass is an important part of the solution, as companies need viable alternatives to coal. Biomass involves using forest and agricultural byproducts, such as wood chips and crop residues, to produce energy.
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