Business groups push back ahead of Vancouver ‘carbon tax’ on commercial buildings

Business groups are concerned about new greenhouse gas restrictions for commercial buildings coming to Vancouver next year.

Carbon taxes are falling out of style, with the federal and provincial governments recently pulling back.

But in Vancouver, stricter emissions rules are coming for commercial buildings starting next year.

It’s part of the city’s efforts to cut carbon pollution in half by 2030.

“What the City of Vancouver is planning to implement here essentially amounts to a second carbon tax being implemented at the municipal level,” Ryan Mitton with the Canadian Federation of Independent Business told CTV News in an interview on Friday. “And what this is going to be a charge of $350 per tonne of CO2 that each building emits over a certain level set by the City of Vancouver.”

The new rules take effect in January and include a $500 permit fee.

Business groups fear buildings in violation could be hit with fines in the range of $14,000.

“The landlord will then take that invariably and pass that on to the tenants,” Ian Tostenson with the BC Restaurant and Foodservices Association told CTV News.

While restaurant emissions are exempt according to the city, if a large building is penalized for emitting too much, Tostenson fears landlords will pass that cost on to all tenants in the building, including restaurants.

Given the federal and provincial governments recently eliminated carbon taxes, businesses are calling for Vancouver to follow suit and back away from this plan.

“I just really hope that Mayor Ken Sim and council look at this proposal and decide to walk it back,” Mitton said.

The city believes 84 per cent of buildings will be in compliance, based on 2024 figures, and says financial penalties only kick in by 2027 – which it says will allow enough time for building owners to prepare for the new regulations.

This is a phased program that was initially voted for in 2022, and given how much has changed economically, some of these business groups believe city council would be willing to press pause on this, but there is no formal indication at this point that will happen.

The city stresses this plan is about reducing emissions, not about generating revenue, and says based on reporting to date, most large buildings will be in compliance when the rules kick in.