Gerd Altmann photo
OTTAWA – Canada’s Liberal government says it’s critical to raise the carbon tax to $170 a tonne by 2030 but Quebec is exempt.
Quebec’s cap-and-trade plan that requires emitters to buy carbon credits, equals a carbon price of just $17 a tonne, which is enough to exempt Quebec from the federal tax.
The tax is currently $30 a tonne. There will be a gradual increase in the federal carbon tax on fuels to $170 a tonne by 2030. Canada aims to reduce greenhouse gas (GHG) emissions by 30 per cent, which is below 2005 levels by 2030. The price at the pump will increase by 37.57 cents a litre by 2030. The cost of light fuel oil for home heating, natural gas and propane will also rise.
The government says there will be $15 billion in new spending on climate initiatives over the next 10 years. This money is earmarked for improvements to Canada’s electric vehicle charging infrastructure, tax write-offs for zero-emissions vehicles, rebates, and funding for home retrofits.
The estimated size of the global clean technology market is expected to range between $2.5 trillion and $6.4 trillion (USD) by 2022-23. This strengthened climate plan seizes that opportunity and positions Canadian workers and businesses to be among the leaders in the increasingly low-carbon global economy.
In the recent Fall Economic Statement, the Government of Canada proposed to support the economy’s clean and competitive transition by providing grants to help Canadians make their homes greener and more energy-efficient. It will provide additional funds for the installation of new charging and refueling stations for zero-emission vehicles, and more support for large-scale clean power transmission projects.
The carbon tax, however, hasn’t deterred large vehicles sales. The top-five best-selling vehicles in the county are pickup trucks or SUVs while the percentage of electric vehicle sales remains in the low single digits.
The government also proposed in the Fall Economic Statement to invest in nature-based climate solutions, including to restore degraded ecosystems, protect wildlife, and establish a new Natural Climate Solutions for Agriculture Fund.