(Ottawa) Carbon pricing is intended to be a tool to combat climate change, but no other issue is the subject of such heated debate in the federal political scene.
Posted at 12:54 p.m
Mia Rabson The Canadian Press
Federal Prime Minister Justin Trudeau has to consider increasing requests for exemptions after he announced a moratorium on the carbon tax on heating oil in October.
Conservative leader Pierre Poilievre is putting more pressure on the government to scrap carbon pricing entirely. So far he has managed to convince many voters that this measure is the main cause of inflation.
Now he tries to slice the pricing like a sausage. For example, Huron-Bruce Conservative Rep. Bob Loob introduced a bill that would exempt farmers from paying the carbon tax on natural gas and propane. Mr Poilievre has prioritized this private member's bill.
Bill C-234 was passed by the Senate in mid-December. However, because it contained amendments, it must be reconsidered by the House of Commons.
The proposed changes limit the temporary exemption to propane used for a grain dryer. If the entire opposition – the Conservatives, the New Democrats and the Bloc – supports it as they did the first time, that means a new exemption will have to be granted.
And other prime ministers are also calling for exceptions for natural gas because, like heating oil for the Atlantic provinces, this product is the main source of heat in their province.
Saskatchewan Premier Scott Moe promised only to stop collecting taxes for the federal government starting in January.
The new Northwest Territories premier, RJ Simpson, has called for a waiver for his entire province, saying the price of heating oil is so high in the north that if it had existed, it would have already chosen another solution.
For now, Justin Trudeau remains true to his desire not to open the door to new exemptions.
Michael Bernstein, CEO of the Clean Prosperity Group, says he believes the German Prime Minister.
“I don’t expect that the current federal government won’t reverse its program even further,” he believes.
In any case, the abolition of tariffs will not be done with a chisel or axe.
A majority of economists believe that pricing is the most effective way to reduce emissions. And many business leaders prefer this system.
“From an economic perspective, it is the most effective way to reduce emissions with a minimum of government intervention, a minimum of commitments and rules,” emphasizes Heather Exner-Pirot, special adviser on economic transition at the Business Council of Canada. This program focuses on broadcasts only. If we reduce emissions, we pay less. It's very easy. We don't have to choose a sector, we leave all the work to the market. »
The regulations are more groundbreaking and more costly to implement, says Ms. Erner-Pirot. Companies generally prefer pricing.
In the long run, abolishing user fees could even lead to impoverishment of families and have international repercussions.
The Parliamentary Budget Office has estimated that in 2030, when the federal carbon fee reaches $170 per ton, most households “will receive more climate stimulus payments than the total amount they pay in federal fuel taxes (direct and indirect).” This profit could amount to $388.
As for the international impact, the European Union would likely impose import duties on products from countries where there are no minimum prices.
“That’s something to consider,” agrees Mr. Bernstein. For Canada, maintaining the competitiveness of its exports may depend on an effective carbon pricing program.”
However, he acknowledges that this argument will not be easy to sell to voters.