Sunday, May 1, 2011

NDP Cap and Trade

So what is this? We had Stephan Dion talking Carbon Tax, as does Elizabeth May, both ideas soundly rejected by the electorate.
Canada STILL feels the pains of Trudeau's National Energy Program, an ill conceived idea that pitted east and west against one another. We still pay the "double tax" on that resource if I'm not mistaken.
So back to "What is this?"
It's fairly simple. A company is told how much emissions it's allowed to produce. Your rate is "capped" there. If you produce more, you need to buy a "permit". That "permit" will cost money. The nice thing is, you can buy these "permits" or "trade" them.
Ya... like you can buy and sell stocks, you can buy and sell "permits". There is a "Carbon market"... like a fish market, only bigger... and indoors... and sorta "virtual".
Lemme' spin one for you.
I decide I like Jack, (who doesn't know jack), and I embrace his folly. I ask myself, "Self. As a committed capitalist who lost his mind and voted NDP, how can I make money off this hair brained idea?"
I can trade "carbon permits"! A whole new industry can develop. I'm going to go to the coffee shops in the farming communities and pay farmers to use a "no till" policy on their soy bean crops, reducing NOX emissions by about 57%. I can now sell that "saved" 57% to a company burning almost anything in a manufacturing process where combustion takes place so they can exceed their "cap". Seems easy enough... I'll pay less to the farmers than I'll sell to the utility company (or whoever), and the world's eco system will remain in balance!
This is pure folly, and don't think this won't affect YOU. Do you heat your home? Wander downstairs to look at your furnace. The Natural Gas will cost MORE because there will be a "tax" on fuels since all fuels are used for combustion. You ask, "What about Gasoline? Diesel?"  Why are you asking? Are they fuels? Clearly you have your answer... yes, they'll cost more. There are carbon emissions created when these things are refined, and the extra costs is about $2/gal or .50 per liter. If you doubt all this, look up the price of fuel in EU countries, and ask yourself, "Does the EU have a "cap and trade" policy, and is that why they pay so much?
"OK", you say, "But we have electricity in Manitoba, and it's from renewable sources, so we're good."
Do you REALLY believe there will be a "free ride"? Do we need to revisit the National Energy Policy you couldn't figure out why I mentioned earlier, because it had little context?
No right (as in correct, not right as in wing) thinking person will believe that electricity generated by coal will suddenly spike in price to three times it's current price while Hydo electricity gets a free ride... are you daft? They'll "average" it out, and charge us all more... it's called "fair". You believe in "fairness", don't you?
Oh I know, I hear the tree huggers with their well worn Birkenstocks, a granola crumb hanging from their bicycle helmet strap saying, "We need to reduce our carbon foot print."
Lemme tell you where I want to stick my foot print!
Everything will cost MORE.
It's a TAX. It is ECONOMIC POLICY, not environmental policy, and it's a bean counting exercise. 1 in 7 people are currently in some sort of "civil service", now we'll get to 1 in 6 so Jack can get the CO2 police out there.
This is BAD for Canada.This is BAD for me, and if you heat your home, buy groceries, drive anywhere, and need to buy almost anything, it's bad for YOU TOO.

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