Carbon pricing is supposed to be a tool to combat climate change, but no other topic is so hotly debated in federal politics.
Federal Prime Minister Justin Trudeau must examine more and more requests for exemptions, having announced in October a moratorium on the carbon tax for heating oil.
Conservative Leader Pierre Poilievre is putting more pressure on the government to remove carbon pricing altogether. So far, he has succeeded in convincing many voters that this measure is the main cause of inflation.
In the meantime, he is trying to cut the pricing into slices like a sausage. For example, Huron-Bruce Conservative MP Bob Loob introduced a bill to exempt farmers from paying the carbon tax on natural gas and propane. Mr. Poilievre has made this private member’s bill a priority.
Bill C-234 was adopted in mid-December by the Senate. But as it included amendments, it will have to be examined again by the House of Commons.
The proposed amendments limit the temporary exemption to propane used for a grain dryer. If the entire opposition — the Conservatives, the New Democrats and the Bloc — supports it like the first time, this means that a new exemption will have to be granted.
And other prime ministers are also calling for exemptions for natural gas, since, like fuel oil for the Atlantic provinces, this product is the main source of heating in their province.
The Premier of Saskatchewan, Scott Moe, simply promised to no longer collect the tax for the federal government starting in January.
The new premier of the Northwest Territories, RJ Simpson, has called for an exemption for his entire province, saying the price of fuel oil is so expensive in the North that she would have already opted for another solution, if it existed.
For the moment, Justin Trudeau remains firm in his desire not to open the door to new exemptions.
Michael Bernstein, CEO of the Clean Prosperity group, says he believes the federal Prime Minister.
“I do not expect that the current federal government will not further undo the program it put in place,” he believes.
In any case, the elimination of tariffs will not be done by shouting chisels or ax.
A majority of economists believe that pricing is the most effective way to reduce emissions. And a lot of business leaders prefer this system.
“From an economic point of view, it is the most effective way to reduce emissions with the minimum of government interference, the minimum of obligations and rules,” emphasizes Heather Exner-Pirot, a special advisor to the economic transition at the Business Council of Canada. This program only focuses on broadcasts. If we reduce emissions, we will pay less. It’s very simple. We don’t have to choose a sector, we let the market do all the work. »
Regulations are more directive and cost more to put in place, says Mme Erner-Pirot. Businesses generally prefer pricing.
Eliminating user fees could even impoverish families in the long term and have international repercussions.
The Parliamentary Budget Office has estimated that in 2030, when the federal carbon fee reaches $170 per ton, most households will receive “more Climate Action Incentive payments than the total amount they pay in federal fuel taxes (directly and indirectly).” This gain could amount to $388.
As for international repercussions, the European Union would likely impose import taxes on products from countries that do not have minimum pricing.
“It’s something to consider,” agrees Mr. Bernstein. For Canada, maintaining the competitiveness of its exports could depend on an effective carbon pricing program.”
However, he acknowledges that this argument will not be an easy sell to voters.