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Canadian government settles the score

After the Canadian Federal Government had spent much of the past few months touting its new-found green-ness, the new budget, published this week, was seen by many as a touchstone as to whether the Conservatives delivered on their promises.

 

Environmentalists welcome some of the new initiatives, but say Prime Minister Stephen Harper et al. are not doing nearly enough. Let’s look at the facts.

 

For one, Finance minister Jim Flaherty does his best to spook Canadians out of their Dodge Durango’s and into Toyota Priuses. Hybrids and flexfuel cars will be sponsored with significant tax breaks (up to $2,000), while purchasers of SUVs and muscle cars will be whipped with penalties as high as $4,000 for certain gas guzzlers. As we wrote earlier, since the start of 2007 all gasoline sold in Canada must contain 5% biofuel (2% of all diesel must also be from renewable sources). Vehicle emissions, in short, are at the top of Ottawa’s environment priority list.

 

Spending on environmental issues over the next seven years will total $4 billion (all figures in Canadian dollars), but environmentalists point to the fact that half of that is not ‘new’ money: $2 billion is raised by ending an existing tax break for ethanol. Moreover, $1.5 billion were already earmarked for EcoTrust, a fund that sponsors emissions-cutting projects across Canada in conjunction with the Provinces.

 

So what is new? $250 million will be dedicated to a Natural Areas Conservation Program meant to induce the private sector to help protect ecologically sensitive areas. $110m goes to protection of endangered species and their habitats, and $93m to a national water strategy, including a long-overdue cleanup of the Great Lakes.

 

Oh, yes, and that stick-and-carrot approach towards car buyers. Essentially, those paying for the privilege to drive a polluting gas-guzzler will cough up the subsidies that go into the pockets of the hybrid- and flexfuel drivers.  $2,000 Rebates will be available on the Toyota Prius, Honda Civic Hybrid and Ford Escape HEV. A smaller bonus ($1,000) accrues to those purchasing a Toyota Corolla, Mini Cooper or Saturn Vue Hybrid and the Chevrolet Impala and Chrysler Sebring flexfuel editions - all based on the vehicles’ lower fuel consumption.

 

Of the vehicles big on fossil fuel use, the Jeep Grand Cherokee will be most heavily levied: $4,000. A Dodge Durango will cost $2,000 extra; a Nissan Pathfinder SUV goes up $1,000.  The message to the Canadian consumer is clear: from now on you’re not only paying up at the pump, you’re also paying for your emissions up front.

Tags: Fuel , Hybrid , Canada , Biofuel
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