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The federal government’s recent announcement that carbon tax will increase by 566% over ten years could impact Canadian businesses, industries, and consumers. The Trudeau administration plans to raise the existing carbon tax ($30/tonne) starting in 2022 until it reaches $170/tonne in 2030 to reach the Paris target.
Oil sands companies like
Cenovus Energy(TSX:CVE)(NYSE:CVE) face competitive risks in the international markets if the plan becomes law. Similarly, both companies might not be able to pass on higher carbon tax-costs to consumers. Costs such as home heating oil, natural gas and propane might rise.
Greenhouse gas emissions targets