Tariff 9800 - Environmental surchargesEffective April 1, 2023
Tariff 9800 - Environmental surchargesExpires March 31, 2023
Carbon taxes were created by the provinces to help consumers and businesses make more environmentally responsible choices to reduce their use of fossil fuels and related emissions. The purpose of this tariff is to translate carbon emission costs from the method by which they are charged to the railway (e.g. $ per tonne of CO2 equivalent emissions, cap and trade) into a format applicable to customer shipments (e.g. $ per loaded car mile, $ per unit).
Yes. Tariff 9800 applies to all shipments (i.e. all contract and tariff authorities). Specifically, the surcharges in the tariff will apply to all shipments moving through BC, AB, SK, MB, ON, PQ and NB. Should other governments implement environmental taxes or levies, surcharges to pass through such fees will be added to the tariff.
The BC, AB, SK, MB, ON, PQ and NB Carbon Dioxide Emissions Surcharges will be applied to every shipment moving through these provinces, and will appear as a separate line item on invoices in the same currency as the associated freight charges.
Each surcharge is calculated for equitable application to every car and container moving through BC, AB, SK, MB, ON, PQ and NB to recover the incremental expense associated with environmental taxes or levies. The surcharge amounts are calculated to recover this projected expense and CP monitors to ensure it is not over-recovered.
When a new environmental tax is introduced, a surcharge to pass through the new tax in an equitable manner will be added to the tariff.