{"id":23653,"date":"2021-03-31T04:52:14","date_gmt":"2021-03-31T04:52:14","guid":{"rendered":"https:\/\/rbsitsoftwaresolution.com\/blog\/a-supreme-court-ruling-affirming-canadas-carbon-tax-opens-the-door-for-a-startup-explosion.html"},"modified":"2021-03-31T04:52:14","modified_gmt":"2021-03-31T04:52:14","slug":"a-supreme-court-ruling-affirming-canadas-carbon-tax-opens-the-door-for-a-startup-explosion","status":"publish","type":"post","link":"https:\/\/www.rbsitsoftwaresolution.in\/blog\/a-supreme-court-ruling-affirming-canadas-carbon-tax-opens-the-door-for-a-startup-explosion.html","title":{"rendered":"A Supreme Court ruling affirming Canada\u2019s carbon tax opens the door for a startup explosion"},"content":{"rendered":"

Last week the Canadian Supreme Court ruled that the national government\u2019s plan to tax carbon emissions was legal<\/a> in a decision that could have significant implications for the nation\u2019s climate-focused startup companies.<\/p>\n

The ruling put an end to roughly two years of legal challenges and could set the stage for a boom in funding and commercial support for Canadian startup companies developing technologies to curb greenhouse gas emissions, according to investors and entrepreneurs representing some of the world\u2019s largest utilities and petrochemical companies.<\/p>\n

\u201cThe high price on carbon has the potential to make Canada a powerhouse for scaling up breakthrough decarbonization technologies and for deploying solutions like carbon capture, industrial electrification, and hydrogen electrolysis,\u201d said one investor who works with a fund that backs startups on behalf of large energy businesses.<\/p>\n

This 2018 Greenhouse Gas Pricing Act is the cornerstone of the Canadian climate policy pushed through by Prime Minister Justin Trudeau. It establishes minimum pricing standards that all provinces have to meet but gives the provinces the ability to set higher prices. So far, seven of the nation\u2019s 13 provinces are currently paying the \u201cbackstop\u201d rate set by the national government.<\/p>\n

That price is C$30 per tonne of carbon dioxide released, but is set to rise to C$170 per tonne by 2030. That figure is just a bit higher than the current prices that Californians are charged under the state\u2019s carbon pricing plan and roughly four times the price on carbon set by the Northeastern Regional Greenhouse Gas Initiative.<\/p>\n

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Image Credits:<\/strong> Gencho Petkov (opens in a new window)<\/span><\/a> \/ Shutterstock (opens in a new window)<\/span><\/a><\/p>\n

Under the plan, much of the money raised through the tax levied by the Canadian government would be used to support projects and technologies that reduce greenhouse gas emissions or create more sustainable approaches to industry.<\/p>\n

\u201cClimate change is real. It is caused by greenhouse gas emissions resulting from human activities, and it poses a grave threat to humanity\u2019s future,\u201d Chief Justice Richard Wagner wrote, on behalf of the majority, in the Supreme Court ruling.<\/p>\n

Three provinces \u2014 Alberta, Ontario and Saskatchewan challenged the legality of the greenhouse gas policy, and Alberta\u2019s challenge was allowed to proceed to the high court \u2014 holding up the national implementation of the pricing scheme.<\/p>\n

With the roadblocks removed, entrepreneurs and investors around the world expect the carbon scheme to quickly boost the prospects of Canadian startups.<\/p>\n

\u201cThis represents underlying government support and a huge pot of money. If you wanted macro support for an underlying shift in sectoral developments that could substantiate and support tech companies working on climate change mitigation what better then when the government has told you that we care about this and money is free?\u201d said BeZero Carbon founder, Tommy Ricketts. \u201cThere couldn\u2019t be a better condition for startups in Canada.\u201d<\/span><\/p>\n

Companies that stand to directly benefit from a carbon tax in Canada include businesses like Kanin Energy, which develops decarbonization projects, including waste heat to power; CERT, which is currently competing in the carbon Xprize and is working on a way to convert carbon dioxide to ethylene; and SeeO2, a company also working on carbon dioxide conversion technologies.<\/p>\n

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Corporate sustainability initiatives may open doors for carbon offset startups<\/a><\/p>\n<\/blockquote>\n

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Geothermal technologies like Quaise and Eavor could also see a boost, as will companies that focus on the electrification of the transportation industry in Canada.<\/p>\n

Farther afield are the companies like Planetary Hydrogen, which combines hydrogen production and carbon capture in a way that also contributes to ocean de-acidification.<\/p>\n

\u201cThink about the gas at the pump. That is going to get charged extra,\u201d said one investor who works for the venture arm of one of the largest oil and gas companies in the world, who was not authorized to speak to the press. \u201cFor cleaner energy the price will definitely be reduced. And think about where this tax is going. Most of the tax is going to go to government funding into cleantech or climate-tech companies. So you have a double boost for startups in the carbon footprint reduction area.\u201d<\/span><\/p>\n

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Early Stage<\/a> is the premier \u201chow-to\u201d event for startup entrepreneurs and investors. You\u2019ll hear firsthand how some of the most successful founders and VCs build their businesses, raise money and manage their portfolios. We\u2019ll cover every aspect of company building: Fundraising, recruiting, sales, product-market fit, PR, marketing and brand building. Each session also has audience participation built-in \u2014 there\u2019s ample time included for audience questions and discussion. Use code \u201cTCARTICLE\u201d at checkout to get 20% off tickets right here<\/a>.<\/em><\/p>\n

Article source: https:\/\/techcrunch.com\/2021\/03\/28\/a-supreme-court-ruling-affirming-canadas-carbon-tax-opens-the-door-for-a-startup-explosion\/<\/p>","protected":false},"excerpt":{"rendered":"

Last week the Canadian Supreme Court ruled that the national government\u2019s plan to tax carbon emissions was legal in a decision that could have significant implications for the nation\u2019s climate-focused <\/p>\n","protected":false},"author":1,"featured_media":23654,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[17],"tags":[23],"class_list":["post-23653","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-networking-and-communication","tag-network-and-communication"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t