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Gordon Campbell has officially stolen the title of North America's greenest leader from the reigning champ, California Governor Arnold Schwarzenegger. First, the B.C. Premier committed to cutting emissions by 33% by 2020. Then, on Feb. 28, he unveiled a carbon tax, the first of its kind in North America. Under the Premier's plan, C02 will be taxed at a rate of $10 a tonne. That means drivers can expect to pay an extra 2.4 cents a litre at the pump. The tax is set to increase by $5 per tonne every year until 2012. In the first three years, it's estimated the tax will bring in $1.85 billion in revenue. Here's the twist: Every penny will, by law, be returned to British Columbians in the form of lower business and income taxes. We asked Premier Campbell what the tax means for the future.

Why is this the right time for a carbon tax in B.C.?
We're beyond the debate about whether climate change is something that has to be dealt with. We're living through the experience of climate change right now in B.C. Many others are, as well. Our economy has strengthened, our books are balanced, and we are now in a strong position to make these kinds of changes.

Was there a particular moment when this issue crystallized for you?
I think 2006 was probably the tipping-point year, the year when this idea really quickened in the public mind. I was in China that fall, and when you're in Beijing, you can really see the impact of billions of individual decisions on the environment. That was a graphic illustration of the challenges we face.

B.C. can't avert climate change by itself, so how important is leadership on this issue?
I always say that I'll take any good idea from any jurisdiction and give it to British Columbia if it will help us meet our goals. I am always looking to other states, other provinces, and asking: "What are you doing that's working? How can we copy that?" This plan is going to be a real competitive advantage to our economy in B.C. Our income taxes are going to be lower than any other jurisdiction in Canada. Our corporate taxes are going to be lower than any other jurisdiction. So will our small-business taxes. So I'm hopeful that other provinces will see what we're doing and want to follow.

So even if fixing climate change weren't the end goal, this type of shift in taxes would still make sense?
In British Columbia, the major challenge we face is human resources. I want to attract people to our economy. I want to be able to say to them that they are paying the lowest income taxes here. This is about citizen decisions, and, to be candid, most of the challenges we face in the future will also count on citizens making decisions. Not just on climate change, but also with regard to health care. All of those things require us as citizens to take more responsibility for what we do.

How easy is it, within the structure of government, to say, "We're going to do something that other people are afraid to do, and this is how we're going to do it"?
This change was not advocated only by me. This tax was supported by our cabinet, by our caucus and by the Finance Minister [Carole Taylor], who was very helpful and thoughtful. This is not mine; this belongs to the government. Everyone has been behind it. And I think that's reflective of the public. I think that what we're really saying is that the public was hungry for change, hungry for an opportunity to be part of the solution.