(OTTAWA) A new federal report says checks sent in 2021 for “carbon pricing” far exceeded what most recipients had paid that year by buying hydrocarbons.
The federal government’s annual “Carbon Pollution Pricing” report indicates that, on average, families in the four provinces affected by the scheme – the Prairies and Ontario – received in 2021 between 34% and 59% more in rebates from Ottawa than they had paid in “carbon tax” that year.
Each province must have the same pricing levied on fuels that emit greenhouse gases, but only Alberta, Saskatchewan, Manitoba and Ontario used the federal scheme in 2021. All other provinces had implemented their own consumer carbon pricing program.
The Parliamentary Budget Officer released a separate analysis last week, which also concluded that direct rebates exceeded the expenses incurred by most families.
But he also warned that most households could see a net loss by the end of this decade as carbon pricing stunts economic growth.
Federal Environment Minister Steven Guilbeault said the Parliamentary Budget Officer admitted in his report that this warning does not take into account the economic impacts that climate change itself will cause if we do not do more to slow it down through public policies such as carbon pricing.
In 2023-2024, the federal fuel charge will be extended to Nova Scotia, Prince Edward Island and Newfoundland and Labrador. This royalty will continue to apply in Alberta, Saskatchewan, Manitoba and Ontario.