The first update of the Plan for a Green Economy presented a few days ago by the Government of Quebec reminds us of the scale of the climate challenge we are facing: with 51% of the actions allowing us to reach our targets for reducing greenhouse gas (GHG) emissions identified, half the work remains to be planned.
Posted at 11:00 a.m.
We believe that our governments hold the key to ensuring an ecological transition based on the proven capacity for innovation of the Quebec economy: adapted, effective and innovative eco-taxation measures. We can define eco-taxation as the mobilization of economic instruments to discourage activities that harm the protection of our environment, but also to reward consistent behavior that is favorable to it. In doing so, ecofiscal measures contribute to internalizing environmental costs in the price of products and services while applying the polluter-pays principle. By making it possible to apply these principles of the Quebec law on sustainable development, ecofiscality is a tool of choice to catalyze a green economy.
Moreover, several ecofiscal measures are already in place in Quebec. Let us think in particular of the contribution of owners of passenger vehicles to public transport or the imposition of additional registration fees1 for the engine over 4 liters.
The disposal charge is also an eco-fiscal measure that is well established in Québec and which has contributed to the development of alternative solutions for recycling and processing organic materials.
Although they constitute good measures, they are often insufficient and unfortunately are not subject to the evaluations and follow-ups that are necessary for the real scope of their beneficial effects. For example, the contribution of passenger vehicle owners to public transport has not been indexed since 1992. The recommendations of Paul Lanoie, Sustainable Development Commissioner at the Office of the Auditor General of Quebec, are however eloquent in the sense of good practices and positive measures. The use of ecofiscal measures not only leads to changes in behavior and savings, but it is necessary to adopt better ways of evaluating these measures and implementing them.
The Québec cap-and-trade system for emission rights (SPEDE), our common carbon market with California, is a flagship eco-taxation measure in the fight against climate change. Despite this unparalleled tool in Canada, the price of carbon on the market has not been high enough to reduce GHG emissions related to the transportation sector, which continues to grow. In fact, emissions from light trucks alone have increased by 157.6% between 1990 and 2019.2
According to the Ministry of the Environment’s own forecasts, the price of carbon should reach $97 by 2030, while Canada’s carbon tax would reach $170 at the same time and Sweden’s is already around $155.
Thus, to change behavior and curb the increase in GHG emissions produced by the transport sector, it will be necessary to ensure that the market price signal is sufficiently high.
We also believe that it is essential that Quebec’s GHG emissions inventory data be counted more quickly and disseminated more frequently in order to allow for better monitoring and greater transparency. These inventory data should also be related to the evolution of the SPEDE emission ceilings.
The idea behind Réseau Environnement’s vision of an eco-fiscal system adapted to the reality of Quebecers’ way of life is first to suggest healthy limits to certain practices that are not sustainable for our environment. We will need boldness.