The countdown has begun. The latest report from the Intergovernmental Panel on Climate Change (IPCC) unequivocally states that global greenhouse gas (GHG) emissions must be capped by 2025 and reduced by at least 43 % by 2030. It also demands an end to subsidies for the fossil fuel sector and a significant reduction in the consumption of fossil fuels. In the desire for global change, he also recommends changing the way we eat. “Sobriety” should now guide our choices.
Posted at 12:00 p.m.
At the risk of displeasing many, we must introduce measures that will affect our portfolio through new tax tools. Remember that inaction in the fight against climate change will cost much more than climate action. In other words, we will have to put our hands in our pockets, but if we wait any longer, we will have to dig deeper, at the risk of leaving more people left behind.
In fact, in the scenario where no additional action is taken in the face of climate change and the increase in the frequency of weather events, the International Monetary Fund (IMF) estimates that the losses would represent 25% of world GDP by 2050.
However, if the energy transition accelerates now as virtually every scientist on the planet demands, the Network for Greening the Financial System – a network of banks and supervisory authorities in favor of a green transition of the financial system financial institution – estimates that global GDP would fall by 2% in line with the goal of net zero emissions by 2050. A slower transition, however, could sink GDP by almost 5% by 2050. So the equation is simple: the longer you wait, the more expensive the change will cost.
The issue is global and Quebec is just as concerned. The IPCC remains optimistic: it is not too late to act. So the hell, what are we waiting for?
Targeting the portfolio with ecofiscal measures
To change behavior, we must introduce eco-taxation measures, because they affect a fundamental element: our capital. Taxation is not neutral and it never has been. The state uses taxation to encourage certain behaviors and to discourage others. For example, the government imposes a tax on tobacco products in order to discourage its consumption and prevent other people from choosing these products that are harmful to health.
It is a question of using the same process to accelerate the achievement of our objectives in terms of energy transition. Ecofiscality aims to consider the value of the real environmental cost that market mechanisms are unable to integrate and to modify certain behaviors in order to achieve objectives in the fight against climate change. Unfortunately, Quebec and Canada do poorly on the scale of the countries of the Organization for Economic Co-operation and Development (OECD). Indeed, in 2018, Quebec’s ecofiscal levies amounted to $6.5 billion, or approximately 1.4% of its GDP, while these levies only reached 1.1% of Canadian GDP. The average for OECD countries is rather 2.3%. Quebec can and must do better.
The possibilities are numerous: road pricing, tax on the purchase of an energy-intensive vehicle, pricing on single-use products as proposed by a new by-law from the municipality of Prévost, in the Laurentians, reduction in the price of public transport tickets , imposition of environmental criteria in all state budget items, etc. Ideas are not lacking, rather political courage is lacking.
To refuse ecotaxation like so many other actions aimed at accelerating the transition is to refuse to accept reality. To govern does not mean to obtain more votes in the next elections, it is to make decisions for the collective well-being and that of future generations in the face of the greatest threat to humanity.
On the eve of the general elections, the younger generation has only one hope: to see their rulers take climate change seriously and act accordingly. Ecotaxation is a solution at hand.