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SK premier says small carbon levy could help approve Keystone XL

Saskatchewan’s premier says a carbon levy on the oil and gas industry might help build Washington’s support for the proposed Keystone XL oilsands pipeline.

Yesterday from the U.S. capital, Brad Wall also stressed that such a penalty would have to start off small like Alberta’s current 15 dollars a tonne.

Environmentalists find Alberta’s rate unsuccessful, but the provincial government has suggested tripling it.

Wall says he wants the feds to set emission targets that are harmonized with the States and then let provinces set the financial penalty.

Wall says it might make it easier for President Obama to approve the project if he can show Canada is taking action for the environment.

A decision on the proposed line is expected within the next few months and before this year’s midterm elections.