Factbox: Canada's Alberta sees C$3 billion of new carbon tax revenue

CALGARY (Reuters) - The Canadian province of Alberta, home to the country's oil sands, said on Sunday it would implement an economy-wide tax on carbon emissions in 2017, addressing long-standing criticism it is not doing enough to combat climate change. The oil sands are often criticized by environmental groups since the industry requires vast amounts of energy and water for production, exceeding pollution from more conventional sources of oil. CARBON TAX The tax would generate about C$3 billion ($2.25 billion) in revenue that would be divided into an adjustment fund to help households pay for increased energy costs and also into measures such as clean technology and public transit to reduce pollution. The new tax would be implemented at C$20/ton in 2017 and increased to C$30/ton in 2018, increasing in real terms each year after that. The new tax would replace an existing price on carbon for large industrial facilities. COAL ELECTRICITY The province said it would eliminate pollution from coal-fired electricity generation by 2030. It was also proposing new incentives to increase renewable energy sources. Currently, 55 percent of Alberta's electricity generation comes from coal. OIL SANDS Oil sands operators, Canada's fastest-growing source of greenhouse gas emissions, would pay their carbon tax based on a standard set by the best-performing operations in Alberta. A new target would also be introduced through legislation preventing companies from emitting more than 100 million tons of carbon dioxide emissions a year. If all major companies reach that cap, it would be equivalent to a 40 percent increase in emissions from today's levels. METHANE The province is proposing rules for new facilities that it said would reduce methane emissions from oil and gas companies by 45 percent by 2025. A new voluntary plan would also address venting and fugitive emissions from existing plants. HOUSEHOLD COSTS Alberta estimates the new carbon tax would cost the average household C$320 a year in 2017 and C$470 a year in 2018. ($1 = 1.3329 Canadian dollars) (Reporting by Mike De Souza; Editing by Peter Cooney)