Environmental groups say the confusing array of proposals emerging to tax carbon can be sorted out with one simple rule, "follow the money."

The Pembina Institute and the David Suzuki Foundation held a briefing in Ottawa Thursday to explain how a carbon tax system could work in Canada.

Canadians are facing a barrage of proposals for a carbon tax to cut greenhouse gasses and the two environmental groups say people need to understand what's being pushed politically.

The opposition Liberals are on the verge of launching a national campaign this summer to propose a carbon pricing system that could be a big issue in a federal election campaign.

The NDP announced a carbon tax proposal earlier in the week and the Green Party has its own proposal for a $50 a ton carbon tax.

Essentially, a carbon tax would be applied to all carbon containing fossil fuels like oil, gas and coal. The tax goes on the wholesale price before it's sold to any customers — from big industries to home heating companies to gas stations.

The tax is on the carbon that will be produced once the fuels are burned.

Rule of thumb — every litre of fossil fuel burned generates about 2.4 kilograms of carbon so it's a simple mathematical formula to figure how much tax to charge.

Environmental groups say carbon taxes can be a useful way to cut emissions and they can generate a lot of money for the government.

For example: a $30 a ton tax can generate $10-15 billion a year. At $75 a ton, it can generate up to $50 billion a year. (Those prices are the low and high estimates of what it will take to force consumers and industries to reduce their consumption.)

The question is: what do you do with the money?

The Pembina Institute and David Suzuki Foundation suggest some simple questions:

1. Will the carbon tax be used to provide tax relief in other areas so the tax is revenue neutral?

2. Or will some of that money be used to help develop renewable energy projects and investments in public transit?

3. How do you help buffer low income Canadians who may face higher fuel prices once the tax kicks in?

They say answers are an indication of just how seriously the political party has thought out its carbon tax proposal.

At the same time, the Pembina Institute also released a poll of more than one thousand people conducted at the beginning of May by McAllister Opinion Research that showed 72 percent of Canadians support British Columbia's new carbon tax with 27 percent calling it "very positive" and 45 percent calling it "somewhat positive."

British Columbia's tax starts in July and will be closely watched by other provinces and federal political parties to see how well it's received by the public.