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Andréanne Larouche

  • Member of Parliament
  • Member of Parliament
  • Bloc Québécois
  • Shefford
  • Quebec
  • Voting Attendance: 66%
  • Expenses Last Quarter: $81,135.43

  • Government Page
  • Nov/7/23 4:30:17 p.m.
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Madam Speaker, I would like to bring the NDP leader's attention to a certain aspect of today's motion. This weekend, I met someone in Quebec who is originally from France and who is well versed in environmental issues in Europe. He told me that we cannot keep thinking that everything will be fine with the environment if we do not take drastic action. Let me explain. We cannot continue to fund the oil companies. He told me that the countries that have seen a real drop in greenhouse gas emissions are the ones that have invested in transition technologies and not in their oil industry. I would like my colleague to say a few words about funding change by implementing a tax on the excess profits of big oil and gas companies. That would be a way of quietly saying that we are taxing them and trying to phase them out, not giving them billions of dollars in subsidies.
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Madam Speaker, as the member for a riding where agriculture plays a key role in the economy, I am pleased to rise this afternoon to speak to Bill C-234. I want to begin by saying that the Bloc Québécois supports the principle of this bill. Even though we do not really agree with the idea of undermining the carbon tax, there is no question that farmers play an important social role and that we all depend on their work. I can confirm that, given how important agri-food, agri-tourism and buying local are to Quebec's economy and more specifically that of the riding of Shefford. That being said, I want to talk about three things in my speech. First, I will provide some background about this bill. Then, I will talk about the situation in Quebec, and finally, I will close by talking about the important role farmers play in the fight against greenhouse gas emissions. To begin with, I will give a little bit of background. Bill C-234 seeks to amend the Greenhouse Gas Pollution Pricing Act, which is commonly known as the “federal carbon tax” or the “carbon tax”. It is true that exempting some farming fuels that are essential for crop and livestock production from the carbon tax seems fair to us, given that the alternatives are still very expensive. Take grain dryers, for example. Members should know that the carbon tax act provides for the general application of a fuel charge, which is paid to the government by the distributor upon delivery. There are already certain criteria for cases where the charge is not payable, including when the fuel is being sold to a farmer and is a qualifying farming fuel, which is defined under section 3 of the act as gasoline, light fuel oil or a prescribed type of fuel. The bill essentially proposes three things. First, it expands the definition of eligible farming machinery to include heating equipment, in particular for buildings used for housing livestock. Second, it clarifies that the definition of eligible farming machinery includes grain dryers. Most grain dryers run on propane, which represents a huge cost. Third, it extends the carbon tax exemption for qualifying farming fuel to marketable natural gas and propane. The qualifying types of fuel are therefore gasoline, light fuel oil, marketable natural gas, propane or a prescribed type of fuel. We cannot forget that the carbon tax is Canada's chosen method to fight climate change. The preamble of the Greenhouse Gas Pollution Pricing Act explains that one of the justifications for the act is the fact that some provinces have not developed and implemented greenhouse gas emissions pricing systems. In 2016, the provinces were given a choice between maintaining or creating a pollution pricing system that would have to meet the federal standard. Quebec's carbon market does not include the agriculture sector. Quebec also has a fuel tax, but this tax is refunded to fishers and farmers. Quebec implemented its own carbon tax system in 2013, the Quebec carbon market, which is a cap-and-trade system for greenhouse gas emission allowances. I will sum it up quickly by saying that Quebec's carbon market meets the federal standard and is primarily designed for industry, electricity producers and importers, and distributors of fossil fuels. It does not apply to the agriculture sector, and businesses can voluntarily register to participate in the carbon market. Outside of the carbon market and the carbon tax, Quebec and Canada have various fuel taxes, including the federal excise tax on gasoline, the Quebec fuel tax, and the greater Montreal area gas tax. Furthermore, the GST and QST are applied to the sub-total after the calculation of other taxes. In those provinces where it is applied, the federal fuel charge is added to other taxes on fuel. In Quebec, farmers are entitled to a refund of fuel taxes, which applies to the Quebec tax. I have provided the context for this bill. I would now like to talk about the fair transition and the importance of agriculture in making this green shift. The Bloc Québécois supports the principle of a just transition. This means that we recognize that it would be unfair to expect workers and their families, as well as farmers, to make this transition happen overnight, especially since they are the first victims of the crisis in the energy sector and of the challenges associated with climate change. Furthermore, even though farm fuels contribute to greenhouse gas emissions, emissions from the agricultural sector are caused primarily by livestock herds and the use of fertilizer. This does not in any way—on the contrary—prevent us from continuing to search for solutions that would reduce the energy used by grain dryers. In the short and medium term, significant reductions in greenhouse gas emissions in Canada must come from the oil and gas production sector, the production of coal-fired electricity and motor vehicle transportation. The western provinces are largely responsible for Canada's increasing greenhouse gas emissions. We have known since 1990 that they need to make drastic changes to their economy and their energy infrastructure. The post-pandemic economic recovery, which is necessary, is a perfect opportunity to do that. If they head in that direction, which they must, the Bloc Québécois will be happy to show solidarity and support measures that provide relief to those for whom the transition is a real economic challenge: workers in polluting sectors, farmers and families. This method releases greenhouse gases, but that needs to be put in context along with other Canadian greenhouse gas sources, the type of climate and available alternatives. Weather and climate affect agricultural costs of production. The fact that the charge applies to farm fuels significantly compounds that phenomenon. If alternative solutions are available, the charge must be applied so that farmers improve their methods and opt for cleaner technology. This is an issue, a dynamic, that deserves our attention as parliamentarians. The goal of climate policy should be to adapt to the effects of climate change, since the consequences of extreme weather events affect us all. A tool like the carbon tax is meant to act as an incentive to change behaviour, in other words to encourage the transition to clean technologies and renewable energy in order to reduce emissions. As I pointed out earlier in a question, it is quite likely that applying the fuel charge to farming businesses may not be so effective if it does not push farmers to reduce their carbon footprint. This issue also warrants closer study. Under the Paris Agreement, Canada committed to reducing its greenhouse gas emissions by 30% from 2005 levels by 2030, to a total of 513 megatonnes of CO2 equivalent. The Government of Canada has since revised its 2030 target upwards to a range of between 40% and 45% below 2005 levels. Canada's emissions have increased by over 20% since 1990. Greenhouse gas emissions associated with Canada's agriculture sector increased 28% between 1990 and 2017, but have stabilized since 2005. Canada's agricultural economic sector emitted a total of 72 megatonnes of CO2 equivalent in 2005. In 2018, emissions from Canada's agriculture industry accounted for 59 megatonnes of greenhouse gases, or 8.1% of Canada's total GHG emissions. That is the figure and it is not that big. However, GHG emissions from on-farm fuel combustion were included in the total for the energy sector, while emissions related to farming fuels were grouped with emissions from the forestry and fishing industries in the “other sectors” subcategory. The calculations are complicated, but to summarize, stationary combustion sources in the agriculture and forestry industries for all of Canada accounted for 3.8 megatonnes in 2018. That is a large number, and efforts will have to be made to reduce the impact of agriculture and farming fuels on total GHG emissions. However, there is more near-term potential for reducing GHG emissions in the oil and gas, electricity generation and transportation sectors. The sector-based GHG emission structure varies significantly from province to province, particularly depending on the method of electricity generation. Historically, the provinces of Alberta and Ontario have been the biggest GHG emitters. In Quebec, agriculture accounts for 9.8% of emissions. By way of comparison, Quebec's transportation sector represents 43.3% of Quebec's emissions, while the electricity generation sector accounts for 0.3%. Quebec's main climate challenge is road transportation, whereas the 18% increase in Alberta's GHG emissions between 2005 and 2017 was primarily due to oil and gas operations, which account for 50% of the province's total emissions. In short, if we decide to spare farmers the burden of environmental taxes, the western provinces will have to engage in the energy transition, diversify their economies to gradually phase out oil and gas production, and stop producing coal-fired electricity. All economic sectors must play a part in combatting climate change, but we must also assess how effective government GHG reduction policies are in relation to the effort they require from citizens, workers and businesses. A just transition means taking environmental, social and economic objectives into account. The energy transition is not meant to come at the expense of workers or the most vulnerable. The challenge is to develop public policy approaches that allow us to move beyond seeing economy and ecology as mutually exclusive. I know that Quebec farmers agree with this and would like to develop better practices. They have a key role to play in the solution. In conclusion, I want to talk about the 2019 propane crisis, which was a big issue when I was first elected. My cellphone was quickly flooded with calls from farmers. As all members know, we must never allow such a situation to happen again. It presents far too many risks for our businesses, and we need to be acting on their behalf. We know that businesses are still too reliant on propane and natural gas for running various other types of machinery, such as grain dryers.
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