Saskatchewan's decision to pause collecting the carbon tax on large industrial emitters add to other moves this year that hinder climate action.

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We write to express strong opposition to the government of Saskatchewan’s decision to cancel industrial carbon pollution pricing effective April 1.

The cancellation of the Output-Based Performance Standards (OBPS) Program on industrial greenhouse gas pollution in Saskatchewan leaves a gaping hole in Saskatchewan’s climate change plan (Prairie Resilience).

It also brazenly violates federal law, and undermines Canada’s commitment to the rest of the world to reduce nation-wide greenhouse gas pollution 40 per cent by 2030.

Large emitter pollution pricing systems across Canada, like the OBPS program in Saskatchewan, are projected to be responsible for more than one quarter of Canada’s greenhouse gas emission reduction over the next five years. The OBPS program creates incentives to cut emissions while keeping costs low for businesses.

Under the Output-Based Performance Standards Program, big emitters only pay for greenhouse gas emissions that go above a certain threshold. Thus, industrial carbon pricing imposes smaller costs on business, but creates attractive incentives for cutting pollution.

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The minimum national standards set by the federal government play an important role, bringing Canada’s many industrial carbon pricing systems into alignment. The government of Saskatchewan is clearly attempting to undermine this national effort by removing its OBPS program.

As it does so, Saskatchewan’s government is also forgoing a critically important revenue source, thus driving our province into deeper debt.

Cancelling industrial carbon pricing in Saskatchewan will create uncertainty for business and for investors who were planning clean technology investments.

It could also undermine Saskatchewan exports to trading partners such as the European Union, which is bringing in carbon border adjustment tariffs that will disadvantage high-emission jurisdictions.

The abandonment of industrial carbon pollution pricing is not the only unwise step the Saskatchewan government has taken in recent weeks to undermine good climate change policy.

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