44th Parl. 1st Sess.
February 7, 2023 10:00AM
- Feb/7/23 11:16:31 a.m.
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Madam Speaker, the hon. colleague across the way sits with me on the environment committee, and we have great discussions there. I am glad to have a discussion with her today through you, Madam Speaker.
I really appreciated her pointing out the Parliamentary Budget Officer's numbers and how they are being interpreted. When we go from annual payments to Canadians to quarterly payments, the amount going out in the financial period is going to be smaller. When we look over the whole year, it is going to be the same, but at a point in time, they can say we are not returning the money to Canadians. Could the hon. member comment on how the money is getting to Canadians and Quebeckers throughout the course of the year?
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- Feb/7/23 11:47:02 a.m.
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Madam Speaker, British Columbia has participated in the global carbon market for a number of years now and has had the economic benefit of that as well as some climate change benefits, as the member has mentioned, with new industries coming to British Columbia. I have seen a lot of EV adaptation in British Columbia compared to places that do not have participation in the carbon market.
The member also mentioned health benefits. As someone who has asthma, I know that having clean air is very important to being able to breathe everyday.
Could the hon. member talk about what it means to be in the carbon market versus sitting on the sidelines of the carbon market, as this opposition day motion would ask us to do?
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- Feb/7/23 12:51:09 p.m.
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Mr. Speaker, the hon. member for Kings—Hants is also the chair of the agriculture committee. He mentioned there were some benefits around agriculture that he did not address in his speech. Maybe he could comment on that. In terms of fertilizer use, one of the areas we are focusing on is a more efficient use of fertilizer with the four Rs and reducing emissions from fertilizer. Maybe the member has other examples of what we are working on.
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- Feb/7/23 1:17:06 p.m.
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Mr. Speaker, the hon. member got my attention when she said that Canada has the worst GDP growth in developed countries. I had to quickly look up what the forecasts are for 2023. Canada is 1.5%, United States is 1.4%, France is 0.7%, Germany is 0.1% and England is -0.6%. It seems to me she has the facts backward.
Can the member correct that for the record?
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- Feb/7/23 1:36:52 p.m.
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Mr. Speaker, I will be splitting my time with the member for Kingston and the Islands.
It is a privilege today for me to stand to address this motion considering carbon pollution pricing. As hon. members in the House know, climate change is already having unprecedented effects on Canadians. We have seen the evidence all around us: in Quebec, extreme heat; in the west, floods and wildfires; in Atlantic Canada, extreme weather events such as hurricane Fiona. In fact, around the world, we would be hard pressed to find a time when extreme weather was not making devastating news in some part of the world.
The impacts from climate change are wide-ranging. They affect our homes, our cost of living, our health and our safety. It also impacts infrastructure and economic activity in communities across Canada. We know that the problem is carbon pollution.
The latest science warns that to avoid severe impacts of climate change, greenhouse gas emissions must be reduced significantly and urgently to limit the global average temperature increase to 1.5°C.
When we talk about taking action on climate change, the issue is not about choosing between our economy and climate change. It is well understood that the two really do go hand in hand and that the long-term health of our people, our planet and our economy depends on us taking ambitious climate action. The cost of inaction is enormous.
As emphasized in a recent report from the Intergovernmental Panel on Climate Change, the cost includes more severe floods, forest fires, heat waves and droughts that cause environmental and economic damage. Weather-related disasters are costing Canadians more each year. It is rising from tens of millions of dollars to billions of dollar annually in Canada alone.
There are the benefits of action. I encourage members to look at the exponential market growth for clean technology all around the world. In fact, last year, global clean technology activity was anticipated to exceed $2.5 trillion.
It is no secret that we have had an extremely challenging couple of years. First, we had COVID-19, then a geopolitical and humanitarian crisis and now economies are struggling to adjust to the postpandemic world. It is not an easy time, yet climate change is the crisis that will persist if we continue to not take action.
I would like to emphasize that carbon pricing has proven to be the most significant and effective tool to combat climate change.
In April 2021, the Government of Canada responded to the latest science by submitting a strengthened national emissions target of 40% to 45% below 2005 levels by 2030, in addition to its goal of achieving net-zero emissions by 2050.
In March 2022, we released the 2030 emissions reduction plan, outlining how Canada will meeting our 2030 targets. The plan builds on a strong foundation, starting with Canada's first-ever national climate change plan in 2016 and then our strengthened plan released in 2020. The plan shows that we can build a cleaner economy, while making people's daily lives better.
Carbon pricing is central to all these plans. Why? Because it is widely recognized as the most efficient means to reduce carbon emissions and drive innovation and energy efficiency. It creates demand for low-carbon technology, goods and services. As the cost of polluting activities increases, individuals and businesses seek out cleaner alternatives.
We have heard from stakeholders across the country. They have told us that consistency and predictability are key to unlocking investments in the low-carbon economy.
We have heard from businesses and industries. They have shown us they are developing innovative technologies and approaches to reduce emissions. They have asked for clear incentives and supports to put those technologies into practice, including runway time for capital investments to show returns.
Carbon pricing creates those incentives without dictating any particular approach. It lets businesses decide how to best cut their emissions.
At the same time, we know Canadians, especially the most vulnerable, are facing an affordability challenge.
When it comes to the federal approach to carbon pricing, we have not only designed it to maintain the consistency demanded by industry and investors, we have also prioritized affordability for Canadians. The bottom line is that it is not enough to create a cleaner economy. We need to ensure Canadians can afford it.
It is true that pricing carbon pollution modestly increases fuel costs, but carbon pricing has never been about raising revenues. In fact, under our plan, most households do in fact end up with more money in their pockets than what they paid. Whenever the federal fuel charge proceeds are returned directly to households, eight out of 10 families get more back through climate action incentive payments than they pay in direct carbon costs, meaning this system is helping with the cost of living for a majority of Canadian families by offsetting their costs.
It is lower-income households that will benefit the most. High-income households tend to spend a lot more on fuel and energy, so they will face a net cost. However, the lowest-income Canadians come out the most ahead. These estimates take into account direct costs, like paying for more fuel, and also indirect costs, like paying a bit more for goods and services.
Families in rural and small communities are eligible to in fact receive 10% more than families in urban centres.
Households can use these funds however they want. They can use them to absorb the extra two cents per litre on gasoline if they choose. Any households can take action to reduce their energy use to come out even further ahead by going to something like zero-emission vehicles to reduce fuel consumption or federal purchase incentives that help to reduce the cost of heating.
The federal government is also supporting home energy retrofits in Canada, through the greener homes grant, to reduce energy used at home. They save money and cut pollution at the same time.
The Government of Canada has also committed to return the proceeds collected from federal output-based pricing system, or OBPS, to the jurisdictions of origin. Provinces and territories that have voluntarily adopted the OBPS can opt for a direct transfer of proceeds collected. The proceeds that are collected in other backstop jurisdictions will be returned through the OBPS proceeds fund aimed at supporting clean industrial technology and clean electricity proceeds.
Climate change is a serious challenge, and it does not go away with the decisions we make in the chamber. However, we can mitigate the impacts of climate change and we can reduce climate change in the future.
Analysis by the Global Commission on the Economy and Climate estimates that transitioning to a low-carbon economy will deliver a direct economic gain of $26 trillion and generate 65 million new jobs.
Just as we are putting a price on pollution, we are also making historic investments in clean technology. We are investing in green infrastructure. We are driving growth, creating jobs and including $9.1 billion in new investments to cut pollution and grow the economy as part of the 2030 emissions reduction plan.
Canadians have been clear about what they want: clean air and good jobs, a healthy environment and a strong economy. Our approach assures that Canadians are well placed to benefit from the opportunities created by the global transition that is under way. I am happy to say that our climate plan is working.
Evidence confirms that putting a price on carbon pollution works. It spurs clean growth, supports jobs and cuts pollution causing climate change. Pricing carbon pollution and returning the proceeds to Canadian families and businesses is an effective and affordable way to combat climate change, while supporting the sustainability of Canadian communities.
Canada has established itself as a champion of carbon pricing and now has international recognition as a leader and an innovator on carbon pricing. Significantly driving the force behind our success is that the Government of Canada cares about the well-being of our economy, our environment and all Canadians today and for many tomorrows. We will continue to put them first.
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- Feb/7/23 1:47:34 p.m.
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Mr. Speaker, the hon. member across the way is trying to make the argument that doing nothing is the best option. However, what we have seen through successive Conservative governments is that doing nothing is not the best option. In fact, eight out of 10 Canadians benefit from the system we put in place, and the environment will benefit at the same time. Doing nothing is not an option.
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- Feb/7/23 1:48:44 p.m.
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Mr. Speaker, I thank the member for Abitibi—Témiscamingue for his intervention and for his previous interventions, as he is focusing on the industrial opportunity we have as a country. His riding is creating green aluminum, which is then used in electronic vehicles, and we have supply chain opportunities through the policies we are putting forward.
Absolutely, the member is correct that we have to transition into these new jobs to get ahead of them so that those jobs are not happening in other countries but happening in Quebec and in Canada.
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- Feb/7/23 1:50:03 p.m.
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Mr. Speaker, what we are working on is the transition for businesses. That includes transitioning from the rebates we have been offering to oil and gas and accelerating them by two years so we can move faster and attract more international investment into Canadian industries, including oil and gas, which is still a very important industry for Canada that we cannot lose. We have to transition the jobs and transition the economy, and we have to provide greener opportunities within that industry.
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