EDMONTON – Alberta has released estimates showing its climate change plan will shrink the economy in the short term.
But Environment Minister Shannon Phillips says the numbers are preliminary and don’t yet take into account the expected growth of a diversified energy industry.
The province estimated the economic impact of its carbon plan will be 0.3 or 0.4 per cent of the GDP by the year 2022, which translates into slower growth of .05 per cent per year during that time.
It also estimates that getting a pipeline to tidewater, which would give Alberta a better price for its oil, would more than offset the input costs on the carbon plan.
Phillips says they expect a minimum of $10 billion in new private sector investments as the province moves toward a new energy economy with more emphasis on wind, solar and hydro power.
Alberta is implementing a broad-based carbon tax in January that is expected to bring in $3 billion a year.