Northern Ontario braces for higher gas prices as federal carbon tax kicks in

People might be noticing some higher prices at the gas pumps Monday.

The federal carbon tax starts today in the four provinces without their own carbon pricing systems - Ontario, New Brunswick, Manitoba and Saskatchewan.

The price of gas has risen by about 4.4 cents a litre.

However, the federal government says that90 per cent of the revenue will be returned to Canadians in the form of a tax rebate. In Ontario, that rebate means $154 for a single adult or the first adult in a couple and family of four will receive $307.

"We have been lobbying for a carbon price where the money is returned to the citizens on an equitable basis since October 2010 and it's finally happening, 90 per cent of the funds will be returned to citizens on an equitable basis," said CathyOrlando, with the Citizens Climate Lobby in Sudbury.

Orlando says the other 10 per cent will be used for infrastructure projects in different cities across the country.

As for the gas prices raising, Orlando says she doesn't think people in Sudbury will feel the 4.4 cent raise per litre too much.

"I buy gasoline and gas has been as high as $1.70 a litreup here... this is well within the range of the gas prices going up and down," she says.

Residents in the city agree that a carbon tax is an important step in slowing climate change.

"I'm not happy the price will go up for my gas but it's going to happen and if it's going towards cleaning the environment like I think that it should, then I'm okay, I'm still going to buy my gas and drive where I need to go," said Sudbury resident Celeste Bodson.

Others in the city agree, Gary Austin says it's time to do something to fight climate change, especially when people will get a tax rebate from it.

"It's a good thing, I think it'll help reduce our carbon footprint eventually. It's a long process but from everything I've read it's going to do that and it's revenue neutral, so everyone should be happy about it," Austin said.

And when you look to the past, Sudbury already knows what it's like to put a price on pollution.

Sudbury Liberal MP Paul Lefebvre says the city that was once the biggest contributor of acid rain, put a price on pollution and cleaned up its act.

"In Sudbury we know the reality of what pollution can do to your environment. Imagine back in the 60's and 70's if we would've done nothing to stop the pollution in the area. The governments are the ones who intervened and forced the local companies to put a price on the pollution and to force them to make sure that the SO2's(sulfur dioxide)would drop," saidLefebvre.

The city cleaned up its act once before, and Lefebvre says he knows Sudburians can do it again.

"And look now we have all our lakes that we can actually swim in and most of them you can fish in and eat the fish that you're catching," said Lefebvre.

"For me the people of Sudbury know what it is, they know the history of pollution and the effect that it had on our wellbeing."

Slowing the effects of climate change might not be the easiest, adds Cathy Orlando, but it's possible.

"We've got to get this under control, the science is so clear, we are in big trouble. The good news is, if we do all the right things we can shift the economy and create jobs and you know Sudbury might do well under that," she said.

"Steel will be needed to build all sorts of new innovations and what's an essential component of steel? Nickel. So for Sudbury it'll be great."