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Decentralized Democracy

House Hansard - 301

44th Parl. 1st Sess.
April 17, 2024 02:00PM
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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