Citizens’ Climate Lobby Canada reaffirms its staunch advocacy for carbon pricing as an effective tool in the fight against climate change. Responding to prevalent criticisms, the organization underscores the pivotal role of carbon pricing in reducing greenhouse gas (GHG) emissions, driving innovation, and safeguarding economic competitiveness.
Since September 2010, Citizens’ Climate Lobby volunteers have been working towards a livable world. From 2010 to 2018, they expanded to over 100 ridings, lobbied parliamentarians 939 times, and garnered 2895 media hits in newspapers. On their thirteenth lobbying effort in Ottawa, luck was on their side. On October 16, 2018, just before PM Trudeau’s announcement that it would no longer be free to pollute in Canada, now-retired Senator Grant Mitchell said to them, “You are one of the most successful lobbying groups I have worked with because you are about to get what you lobbied for.”
Citizens’ Climate Lobbyists are everyday citizens who relay expert information to their communities and their politicians. The following information is from the recent Open Letter from Economists on Canadian Carbon Pricing which has currently been signed by approximately 200 Canadian economists and growing.
Carbon pricing has proven instrumental in curbing emissions while maintaining economic viability. Since the inception of federal carbon pricing in 2019, Canada has witnessed a notable decrease of almost 8 percent in GHG emissions, with projections indicating that carbon pricing will contribute substantially to emissions reductions by 2030.
Evidence from the Bank of Canada indicates that carbon pricing has a negligible impact on overall inflation. Factors such as disruptions from climate change, the COVID-19 pandemic and geopolitical tensions have primarily influenced inflation rates. Moreover, the majority of carbon-pricing revenues are rebated to households, ensuring that most Canadians are economically unburdened by the policy.
The combination of carbon pricing and rebates provides a dual incentive for emission reduction while safeguarding households’ purchasing power. By rewarding emission reduction efforts with rebates, the policy encourages environmentally conscious behaviour without unduly burdening consumers.
Canada’s carbon pricing framework is designed to promote emission reduction without compromising business competitiveness. Through an output-based pricing system, industries are incentivized to adopt low-carbon practices while remaining economically viable in the global marketplace.
While alternatives exist, carbon pricing remains the most cost-effective means of reducing emissions and fostering green innovation. Abandoning carbon pricing would entail higher costs and fail to offer a comparable solution to combat climate change.
“Over the past few months, there has been a lot of push back against carbon pricing, with critics claiming it significantly contributes to inflation and the affordability crisis,” says Kaitlyn McDonald, member of Parry Sound – Muskoka Chapter of Citizens’ Climate Lobby Canada. “However, when the Bank of Canada explored the impact of carbon pricing on inflation in September 2023, they found that it is not a driver of inflation as it only contributed to 0.15% of rising costs. Carbon pricing has been designed to cut carbon emissions while targeting affordability concerns for middle and lower income Canadians. In contrast, as climate change continues to progress, it will exacerbate affordability issues. We need effective climate change policies like the carbon tax if we want to effectively address present and future affordability concerns.”
The Climate Action Network Canada is an umbrella group for over 200 climate organizations. Here is an excerpt from their recent open letter, “The carbon price serves as an important price signal to consumers and companies, while giving the vast majority of Canadians back more than they pay. Many Canadians have come to depend on the quarterly rebates to meet their basic needs. The government should proceed with the planned April 1st increase in the carbon levy, which will also increase the rebate payments that benefit eight out of ten Canadians.”
For people looking to support carbon pricing they can sign the Parliamentary e-Petition e-4876 here: https://www.ourcommons.ca/petitions/en/Petition/Details?Petition=e-4876
Submitted by Huntsville resident Kaitlyn McDonald on behalf of Citizens’ Climate Lobby Canada, Parry Sound – Muskoka Chapter.
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William Kidd says
Carbon pricing might work to combat climate change, I don’t know. The trouble I see with the liberals system is that Mr. Trudeau tries to use it as a way to buy votes. Apparently 90 percent of the tax collected is given back to Canadians. Why? Why not lower the tax I pay on gas for my car and gas to heat my house and keep the money to fight ghg. Creating rebates just creates more paper work, and more government bungling.
How much ghg does Mr.Trudeau create with jet flights?
Nathan Cockram says
What they fail to mention:
The BoC numbers are deeply flawed: the 0.15 ratio only considered three components of the Consumer Price Index — natural gas, heating oil and gasoline — all of which are retail-taxed items.
This estimate failed to account for second-round or pass-through effects across the entire supply chain of other major CPI components, indicating a narrow focus in their calculations.
Why did the BoC leave out supply chain and food costs, for example, when these commodities are front and centre of the affordability problem.
Another calculation – by the BOC chairman no less – put the estimated inflationary contribution at 16%.
Think critically. Carbon taxes are a poor way to promote energy transition.
John Devins says
If the goal is to reduce pollution the time would better spent convincing China and India to reduce their pollution since they account for over 50% of the total. Yes, we in Canada should do our part but focus where the efforts will make a difference.
Also the cost is not neutral, it’s costing us and causing inflation. For example, look at your heating and electrical bills. There is HST on the carbon tax – a tax on a tax.
It’s costing us a lot in hidden fees and taxes. The government administration cost is $85M/yr and certain to grow and its effect (which is not even measured) is questionable.
Diana Mitchell says
I don’t see how it is not causing inflation because someone sent me an email from a truck driver who delivers food and he has to pay the tax on tax too (putting his expenses way up) – so this will be passed on to the consumer. If that is not putting the price of food up, then what else is it? I buy propane and on that bill I too pay tax on top of tax – surely that should not be allowed!! Another scheme to collect more GST in their coffers. I wonder where and how they figured out that we are cutting emissions with the carbon tax?? As well too, as someone else mentioned: if people are getting back as much or more than it has cost them, then why bother as it is going to cost a lot of money on the administration involved with collecting and distributing.
David Harrison says
The article states; “Carbon pricing has proven instrumental in curbing emissions while maintaining economic viability. Since the inception of federal carbon pricing in 2019, Canada has witnessed a notable decrease of almost 8 percent in GHG emission..” I humbly suggest that most of that reduction can be directly attributed to the COVID pandemic lock down.
I believe it would be far more effective to directly change people’s behaviour. For example, apply a pollution tax directly to the cost of a vehicle (especially transport trucks) and use that tax as a direct rebate towards the cost of an EV.
People’s driving habits have not changed in decades, so adding the carbon tax to gasoline, obviously, does not produce a consequential environmental benefit.
The carbon tax is a burden to the average Canadian, with no PROVABLE environmental benefit.
Bob Braan says
Based on the comments and protests it seems many people, including PP and some premiers, still don’t understand the point of the tax and the rebate. And the tiny effect of the carbon tax on inflation.
Search “LETTER: Axing the controversial carbon tax ‘makes no sense” for one explanation.
Here is another one:
https://southmuskoka.doppleronline.ca/listen-up-after-the-tax-a-guest-post-by-dave-wilkin-commentary/#comment-70710
And another,
Don’t believe anyone.
Especially PP.
Just figure it out yourself.
https://doppleronline.ca/huntsville/dont-axe-the-tax/
In fact “Fossil fuel subsidies cost Canadians a lot more money than the carbon tax.”
Bob Braan says
Want to save money and emissions?
Ontario has a new optional Ultra Low Plan for electricity.
Only 2.8 cents per kWh overnight every night.
We save around $200/year by having timers on our electric hot water tank and hot tub so they only heat in the middle of the night.
Lower monthly bills than 5 years ago.
A hot water heater timer, EH40, is $95 at HD.
You have to avoid the 28 cents per kWh for 5 hrs 4-9 weekdays.
A toaster oven only uses 1/4 the power of a full size oven. Or else the BBQ.
The new plan is cheaper in the morning and noon peak TOU times as well.
2.8 cents per kWh is less cost than nat gas for hot water and no carbon tax.
Electric tanks are much cheaper to buy and install and operate at the Ultra Low plan.
Gas water heaters should be obsolete.
An EV only costs $100/yr to run at the 2.8 cents per kWh rate.
Instead of $100 every week or two for gas.
Actually FREE “fuel” courtesy of the gas burners.
EV owners don’t pay the carbon tax for gas but still get the big rebate which more than covers the entire yearly cost of “fuel.”
Energy conservation and shifting demand to off peak times has the same effect as new generation and distribution for pennies on the dollar.
Pennies.
Ontario used to have many Save On Energy rebates to conserve and shift power demand.
Until Dud Ford.
Ontario used to be 96% non-fossil fuel power.
Something to be proud of.
Due to Dud Ford cancelling green projects and increasing expensive natural gas power to meet peak demand we are down to 90% non-fossil fuel power and dropping.
Ontario is getting less green, unlike the rest of the world.
Something to be embarrassed about.
Among many of Ford’s many other embarrassing and deadly moves.
“Doug Ford government wants new gas plants to boost Ontario’s electricity system”
But “This community just threw a wrench into Doug Ford’s plans for new gas plants”
Cities are stopping Ford for environmental reasons using legislation he created.
That’s funny.