On February 19th the BC Liberal government introduced their budget for the new fiscal year. Since unveiling a cascading array of Green Plans and announcements, starting with last year's Throne Speech, and book-ended by this year's on Feb. 13th, the pressure to deliver a spending plan that reduces greenhouse gas emissions and builds a sustainable energy economy has mounted. Excerpted from this year's speech:

We cannot be paralyzed into inaction by the scale of the task at hand. Rather, we will act now to make a real difference, and to encourage behavioural changes that will drive sustainable growth as a global imperative. -- Throne Speech

Part of this encouragement comes in the form of a carbon tax, making the BC the second province, after Quebec, to legislate this measure. Quebec started collecting tax on carbon last June.

It of course remains to be seen how much the diplomatic BC carbon tax will achieve in net reductions in emissions. Its most prominent promise is that the tax will be "revenue neutral". In other words, the several cents of added tax on gasoline, natural gas and other fuels will be be offset by income tax and business tax cuts. Introducing the carbon tax works to satisfy the strong sustainability and environmental lobby in the province, while at the same time protecting low-income and business taxpayers from any real pain.

Carole Taylor Finance Minister

By 2012 the tax will work out to the equivalent of $30 per tonne. A cap-and-trade system is being developed with the Western Climate Initiative, of which BC is a member.

A $100 "climate action dividend" was also announced, delivering a cheque to each person in the province in June. It appears that this tax is largely a measure to help sell a "post-carbon culture" among the public in BC. The revenue neutral approach is perhaps preparatory step for future measures, which will by then be more acceptable to a greener public.

But no program spending is linked to the revenue from the carbon tax, while numerous initiatives to fight climate change in the province are very much in need of such government support at this key time. Legislation is being introduced along with the budget that requires a plan to be tabled each spring, detailing how the revenue will be returned to business and the public (in the form of tax cuts). Energy-wise consumer decisions will apparently be rewarded, while the annual rising tax rate will be punitive to those who continue to use fossil fuel energy in excess.

With real commitment this plan may bring the desired results, a modest overall decline in emissions of 33% below 2007 levels, by 2020. It will no doubt be followed with interest by climate change activists, taxpayers groups, policy wonks, and behavioural experts alike.