The parliamentary budget officer says the federal carbon tax would have to rise over the coming years if the country is to meet emission-reduction targets under the Paris climate accord.
The issue is by how much and whether the costs are shared broadly.
The carbon tax is already set to rise to $50 per tonne of emissions by 2022 and the Liberals have not said what the path for the levy might be after that.
In a report this morning, budget officer Yves Giroux estimates the tax will have to rise to $117 per tonne by 2030 if it is applied to all industries.
But if the government caps the levy at $50 per tonne for big industrial emitters, households and other sectors of the economy would have to cover the difference, requiring a levy of $289 per tonne in 2030.
The scenarios envisioned by the budget office assume the federal fuel charge applies to all provinces and territories post-2022, and that carbon taxes are the only measure used to close the emissions gap.
The Canadian Press
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