Ottawa – The federal government must protect Canada’s agriculture and forestry sectors from rising costs associated with the coming carbon pricing regime — which could see consumers pay more for goods, the Senate Committee on Agriculture and Forestry said in a report released Tuesday.

The committee is keenly aware of the need to combat climate change, but senators also worry that producers and consumers will suffer hardship from the imposition of carbon pricing.

In its report, the committee outlines the effects of climate change on Canada’s agriculture, agri-food and forestry sectors, and examines the potential effect of carbon pricing on producers and consumers. The report also suggests ways the federal government can support these sectors as they make their contribution toward meeting Canada’s emissions reduction targets.

The committee has made a number of recommendations to strike an appropriate balance between protecting the environment and supporting the foundation of Canada’s economic well-being — Canadian workers and consumers.

Innovation will be crucial to Canada’s success. The report makes recommendations to strengthen Canada’s innovators by, for example, supporting research into the most effective and economical investments in taking action against climate change, and by expanding and developing incentives that recognize and reward resilient practices and the provision of ecosystem services.

Other recommendations are intended to insulate producers — and thus consumers — from possible increases in production costs. These include recommendations to exempt fuel costs for heating and cooling machinery used in farming, as well as propane and natural gas used in farming activities, to provide incentives for beneficial management practices, and to develop offset protocols that would allow agricultural producers and forest owners and managers to receive income through carbon credits.

These carefully considered recommendations are intended to help Canada play its part in combating climate change while supporting Canadian producers and consumers. The committee urges the federal government to act on them.

Quick Facts

• Canada’s agriculture and agri-food sector accounted for one in eight jobs in Canada in 2014, employing 2.3 million people and generating nearly $112 billion or 6.7% of Canada’s gross domestic product (GDP) in that year.
• Between 2015 and 2016, growth in Canada’s forestry sector doubled Canada’s overall economic growth, surging by 2.4%. It contributed $23.1 billion, or 1.4%, of Canada’s GDP during that timeframe.
• Agriculture is responsible for 10% of Canada’s greenhouse gas emissions, though producers are increasingly using innovative techniques to trap carbon in the ground.

Quotes

“To achieve a sustainable future we must provide incentives that spur innovation and motivate Canadians to make positive changes. It will not be easy, but our report makes thoughtful, evidence-based recommendations that will allow more Canadians to help our country combat climate change.”

- Senator Diane Griffin, Chair of the committee.

“Canada’s agriculture, agri-food and forestry sector workers contribute billions of dollars to the Canadian economy. We are impressed at their efforts to shrink their carbon footprint; our report shows how the federal government can support their work to increase the sustainability of their operations.”

- Senator Ghislain Maltais, Deputy Chair of the committee.

Associated Links

• Read the report, Feast or Famine: Impacts of climate change and carbon pricing on agriculture, agri-food and forestry.
• Read about the committee’s March 2018 fact-finding mission to Vancouver and Calgary and to Halifax and Montreal.
• Follow the committee on social media using the hashtag #AGFO.
• Sign up for the Senate’s eNewsletter.

For more information, please contact:

Sonia Noreau
Public Relations Officer
Senate of Canada
613-614-1180 | sonia.noreau@sen.parl.gc.ca