Canada’s Environment and Climate Change Minister has acknowledged that on average households could end up paying more for the price of carbon than they get back in reimbursement, but says the Liberal government has other programs to help Canadians reduce their overall energy costs.
The price of carbon rose over the weekend from $50 to $65 a ton. According to the Canadian Taxpayers Federation, the change will result in a higher cost to consumers at the gas pump, from the current 11.05 cents per liter to 14.31 cents per litre, among other impacts.
The hike comes just days after a report released this week by the Parliamentary Budget Officer (PBO) indicated that by 2030, when the price of carbon is expected to reach $170 a tonne, most households will suffer a net loss, despite rebates offered by the federal government to offset the surtax.
“When the fiscal and economic impacts of the federal fuel charge are taken into account, we estimate that most households will experience a net loss,” Parliamentary Budget Officer Yves Giroux said in a statement after the report was released. “Based on our analysis, most households will pay more in fuel costs and GST, as well as slightly lower incomes, than they will receive in climate action incentive payments. »
Environment Minister Steven Guilbeault told CTV Question Period host Vassy Kapelos in an interview that aired Sunday that while the “average household will pay more” because of the rising carbon price, even after rebates, he says the system is designed to be proportional, which means richer Canadians will always pay bigger bills.
“If you average, yes, it’s going to cost people more, but the people who are paying are the wealthiest of us, that’s exactly how the system was designed,” did he declare.
“So the wealthy are paying more for their carbon consumption and carbon pollution, and we’re supporting, through the transition, middle-class Canadians and low-income Canadians, and that’s exactly what we do,” he also said.
Guilbeault said while the rebates may not cover the full cost to Canadians, the federal government is doing a number of other things to mitigate the cost of climate change and help people transition to a future low carbon. He cited incentive programs for the purchase of electric vehicles and home energy retrofits to reduce home heating costs as examples.
“It’s another way to help Canadians reduce their impact on the environment, but also their overall energy costs,” he said, adding that the PBO report does not take into account the cost of impacts. of climate change.
But when he insisted on the system itself and the commitment that most households would not be disbursed for the carbon price, Guilbeault again stressed that it was proportional and that low-income Canadians saw bigger discounts.
“We said the rebates would help the most needy people in Canada and the system does exactly that,” he said.
Guilbeault also said in a statement this week that the PBO report “fails to take into account the economic opportunities that come with innovation in clean technology,” and referenced the recently tabled federal budget and dedicated energy funds. clean included therein.
“It’s like a company that calculates its revenue by looking at just one side of its ledger,” he said of the Parliamentary Budget Officer’s report.
Federal Tories have repeatedly called on the Liberals to cut the price on carbon, with party leader Pierre Poilievre telling the House of Commons this week: “It’s April Fool’s Day, and the joke will be on Canadians.” Why don’t they cancel this tax? »
Meanwhile in Ontario, the price of carbon became a source of friction between Premier Doug Ford and Guilbeault this week. Ford criticized the program and on Wednesday Guilbeault said he found the comment “incredibly rich coming from a prime minister who has no plan to address climate change.”
The comment prompted the premier to call Guilbeault a “true work.”
“I didn’t say Ontario wasn’t doing anything,” Guilbeault told CTV’s Question Period. “I said the Ontario government didn’t have a climate plan, which is true, and they admitted it themselves.
He added that he was considering a “plan” with a series of measures with targets and progress reports.
Guilbeault said that despite the exchange of comments this week, he is working closely with the Ontario government and its ministers to “try to find a way forward” on several environmental projects and policies.
With files from CTV News’ Stephanie Ha
