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Decentralized Democracy

House Hansard - 301

44th Parl. 1st Sess.
April 17, 2024 02:00PM
  • Apr/17/24 7:21:41 p.m.
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Mr. Speaker, I am grateful for the opportunity to explain to the hon. member for Calgary Rocky Ridge that putting a price on pollution is at the centre of our government's plan to fight climate change and to curb its devastating effects on our communities and our economy. The negative impacts of climate change are very real. The public will not soon forget the destructive force of last year's forest fires that scorched much of Canada and choked our communities, which were cloaked in thick smoke. It would be irresponsible of us to stand idly by instead of proposing solutions to deal with our rapidly changing climate. Standing still is unacceptable. We must act. Our efforts are not just to benefit our generation, they are to protect future generations of Canadians, our children and their children. Our government is taking necessary steps that will have effective, concrete impacts, and a vital part of this plan is Canada's price on pollution. Pollution has a cost. It has a cost for Canadians, for communities, for our health and for our economy. Applying a price on carbon pollution is widely recognized as one of the most efficient ways to reduce emissions and to fight the devastating effects of climate change. Our mechanism also ensures that the price on pollution stays affordable for Canadians. We sometimes hear, especially in the House, that putting a price on pollution costs Canadians too much. I can assure the House that this statement is completely false. In fact, in provinces where the federal pollution pricing system applies, people get back the lion's share of the revenues, and low-income earners benefit the most. This means that our system is helping with the cost of living for a majority of Canadian families while encouraging choices that will help Canada lower its emissions. Our price on pollution ensures that eight out of 10 households in these provinces are receiving more money back through quarterly Canada carbon rebate payments than they pay. Thanks to our government's pollution price mechanism, a family of four living in one of these provinces can receive up to $1,800. As people can see, with our plan, we are not only fighting climate change, but we are also returning money to Canadians. The government does not keep any direct proceeds from federal pollution pricing. Instead, the government returns the money collected to households, small and medium-sized businesses, farmers and indigenous governments. International experts agree that our pollution pricing mechanism is an effective way to fight climate change. With this approach, we are sending a clear message: Pollution has a price. Putting a price on carbon pollution encourages reduction across the economy while giving households and businesses the flexibility to decide when and how to make changes. To achieve this, we need to maintain the price signal that, over the long term, is necessary for carbon pricing to work and bring emissions down. Removing pollution pricing, as the opposition has called for, would eliminate its powerful incentive to encourage people and businesses to change their behaviours and pollute less.
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  • Apr/17/24 7:26:35 p.m.
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Mr. Speaker, our government knows that ensuring sustainability for future generations is paramount, and that is why we are taking action. We are protecting people from the dangers and costs of climate change and ensuring that Canada continues to reduce its greenhouse gas emissions. Not only does our price on pollution help combat climate change, but it also directly gives more money back to many Canadian families at a time when so many need it most.
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Mr. Speaker, Canadians have been through a lot in the past five years, and many are struggling with the cost of living. We have heard numerous calls to scale back the carbon pricing system in response, but carbon pricing is not the problem. It is designed to help families through the Canada carbon rebate, which will help lower- and middle-income households most of all. That is why a pause on carbon pricing simply will not help families keep life affordable. As the Governor of the Bank of Canada explained, the price on carbon contributes only 0.15 percentage points to inflation per year, a tiny portion of the high inflation we have been experiencing. Economists estimate that carbon pricing increased the cost of food by 0.33%. Once again, that is a small portion of what we have all been dealing with in recent months. The main reason for that is that farmers are already exempt from the carbon tax for most of their activities. Bill C‑234 is simply not going to change things for households that are dealing with higher grocery prices, and it is false to suggest that it would. It stands to reason that carbon pricing is not causing inflation. Inflation is something that is happening all over the world, including in many countries that do not have a carbon tax. The real causes are events like the disruptions caused by the COVID-19 crisis and Russia's war in Ukraine driving energy prices up. Canada's price on pollution is designed to protect Canadians from any price increases it does cause. All direct proceeds from pricing carbon pollution under the federal system are returned to the jurisdiction in which they were collected. More than 90% of fuel charge proceeds are returned directly to individuals and households through the Canada carbon rebate. They are distributed via cheque or direct bank deposit every three months, and eight out of 10 families in provinces where the federal system applies receive more money back than they pay. We cannot deny the devastating effects of climate change. Doing nothing is not an option. We would just be wasting time in the global race to find carbon-neutral solutions. The effects of climate change cost Canadian households $720 a year, and this figure will rise to $2,000 a year by 2050. Climate change also costs lives and impacts the physical and mental health of millions. We need to listen to youth, our communities and our businesses. Choosing the easy path now will force us all to take a harder path later, and that is not an option.
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  • Apr/17/24 7:45:54 p.m.
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Mr. Speaker, carbon pricing is one of the simplest and most effective ways to reduce pollution, since it sends a signal across the economy. It gives every household and business an incentive to find ways to reduce pollution, but it leaves them the flexibility to decide when and how to take action. That is why pollution pricing alone helps achieve one-third of the greenhouse gas emissions reductions that we need in order to do our part and mitigate the worst effects of climate change. It is a key pillar of any serious climate plan. Modelling by Environment and Climate Change Canada shows that Canada's emissions in 2021 would have been 18 metric tonnes higher without carbon pricing, which had already been implemented for two years.
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