QUESTION PERIOD — Finance
Carbon Pricing
April 5, 2022
Honourable senators, my question is for the Government Representative in the Senate. Senator Gold, a recent PBO study looked at the effect of federal carbon pricing on the economy. It found that most households in the four provinces that are subject to the federal price on carbon are worse off financially.
The Parliamentary Budget Officer, Mr. Yves Giroux, noted:
Under the Government’s HEHE plan, most households in Alberta, Saskatchewan, Manitoba and Ontario will see a net loss resulting from federal carbon pricing. That is, the costs they face—including the federal carbon levy, higher GST and lower incomes—will exceed the Climate Action Incentive rebate they receive.
The PBO study is based on the current situation, and we know that it doesn’t take into consideration any new green technologies that may result in cost savings, nor does it take into consideration the overall costs of climate inaction.
Senator Gold, what is the government doing to address the concerns of Canadians about carbon pricing and to, at the same time, help educate the public on the real cost of climate inaction?
Thank you, senator, for your question. It’s an important one.
First of all, the government thanks the Parliamentary Budget Officer for his work. That work actually confirms that the price on pollution has a progressive impact and gives 8 out of 10 families more back through climate action incentive rebates than they, in fact, pay.
As colleagues know, pricing carbon pollution is a central part of Canada’s plan to reduce greenhouse gas emissions and drive clean innovation. It is widely regarded around the world as the most efficient policy to reduce emissions.
With regard to the second part of your question, colleague, the government has introduced a number of measures to educate Canadians on the importance of climate action, including the Climate Action and Awareness Fund, which will invest $206 million in projects that build youth awareness, engagement and action; support community-based climate action; advance climate science and technology and support academia. I also note that the government has introduced measures to support Canadians in reducing their carbon use, including the Climate Action Incentive Fund, which helps fund energy-efficient retrofits and other projects to improve energy efficiency and productivity, reducing energy use and carbon pollution while saving money.
Senator Gold, we know that a level of certainty — in fact, a high level of certainty — in carbon pricing is needed to ensure critical future investments in clean technology.
It was announced in the 2030 Emissions Reduction Plan released last week that in order to enhance long-term certainty for investors, the government will be exploring measures that will help provide clarity on the future of carbon pricing. When will the government release more information on these new measures to provide certainty? And could you elaborate on the consultation process that will be undertaken if any such process is planned? Thank you.
Thank you, again, for the important question. The 2030 Emissions Reduction Plan is an ambitious and, the government believes, achievable plan for Canada to reach its climate targets. The plan has been in development for months, and it includes the input of over 30,000 Canadians and, as many colleagues know, a sector-by-sector pathway.
Additionally, I note that it does provide for consultations with respect to driving down carbon pollution from the oil and gas sector. Finally, it further outlines next steps to continue delivering on those priorities for Canadians.
