By Stewart Elgie and Stephanie Cairns

CLIMATE CHANGE DOSSIER
Putting a meaningful price on carbon is essential, not just to combat climate change, but to drive a transformation of Canada’s energy systems and position us to compete in the emerging low-carbon economy.   Financing this transformation will be a challenge, particularly with rising deficits. If a cap-and-trade system is used, selling the permits, as most economists (and President Obama) advocate, could provide the revenues needed for this major public investment. It also could lay the foundation for a (much-needed) coordinated national approach to clean energy policy, as part of a federal-provincial agreement on sharing these carbon revenues.