QUESTION PERIOD — Finance
Carbon Tax
June 13, 2019
Thank you, Your Honour. My question is for the government leader in the Senate. It concerns the report released this morning from the Parliamentary Budget Officer. This report provides an estimate of the additional carbon price that would be needed to achieve Canada’s emissions target under the Paris Agreement, 30 per cent below 2005 levels by 2030.
The PBO report estimates the carbon tax would have to reach $102 per tonne in order to meet the Paris targets. As well, the report notes that this amount would have to apply more broadly covering all sectors except agriculture. It also would have to be applied to all provinces and territories, and not just those currently under the federal backstop.
Senator Harder, according to the PBO, the total impact to the Canadian economy would be a reduction of 1 per cent of our GDP. This would equal about $20 billion taken out of our economy. In the wake of the PBO’s report, how can the government continue to justify its carbon tax?
I thank the honourable senator for his question. He will know, as all senators do, that the Parliamentary Budget Officer is exactly that, the Parliamentary Budget Officer providing advice to parliamentarians.
I would also note, though, that the report confirms that putting a price on pollution is an effective means of reducing emissions. That is a policy that the government has put in place. I can affirm to this chamber that the government has no plans to increase the price on pollution beyond the current scheduled plan.
As all senators will know, 80 per cent of Canadians would be better off under the federal carbon pricing regime.
I would also note that I trust that the PBO report will be useful advice to Mr. Andrew Scheer when he finally releases his climate action plan.
