Saskatchewan announced Thursday it will not collect and remit a federal carbon tax on natural gas for home heating, setting up a fight over national climate policy.
Dustin Duncan, the cabinet minister in charge of SaskEnergy, the province’s natural gas distribution company, made the announcement in a video posted on social media on the last day before the payment deadline for January.
“The government of Saskatchewan will not be remitting the federal carbon tax on natural gas that Saskatchewan families use to heat their homes,” he said.
He explained the move was about affordability and fairness after Ottawa last year announced a carbon pricing exemption on home heating oil, primarily used in Atlantic Canada.
Ottawa has said it expects all provinces to follow the law on federal carbon pricing but has not made clear the repercussions for failing to do so.
“We recognize that this may come with consequences,” Duncan said.
Canada has set a target of slashing total carbon emissions by 40 to 45 per cent below 2005 levels by 2030. Crucial to the plan is the carbon tax that is set to rise to $170 per tonne by 2030.
Critics, citing soaring costs-of-living, have demanded a pause in the collection of the federal levy until inflation stabilizes, particularly on home heating fuels in winter.
Saskatchewan and two other provinces sued in 2021 to try to block the federal carbon tax, but the Supreme Court rejected their arguments.
