KENNEY WHINES AGAIN
Jason Kenney calls for halt to the scheduled federal carbon tax increase

By Paula Tran 770 CHQR
Posted March 28, 2022 


Alberta Premier Jason Kenney, Finance Minister Travis Toews and Government House Leader Jason Nixon will make an announcement on Monday that will call for an end to the federal carbon tax increase scheduled for April 1.


The event comes after the Alberta government announced a temporary halt of the provincial gas tax in response to rising gasoline prices on Mar. 7.

Kenney previously called this move a “back-door way” to scrap the federal carbon tax in the province, which he said punishes people for consuming energy.

“Those economists, the NDP and Liberals are in favour of carbon taxes that drive up energy prices. This is a fundamental philosophical difference,” Kenney said on Mar. 10.

“Albertans spoke to this in the last provincial election and we are fulfilling our commitment in a way to scrap the carbon tax.”

READ MORE: Alberta’s fuel tax holiday is a ‘back-door’ way to scrapping federal carbon tax, says Premier Jason Kenney

A University of Calgary’s School of Public Policy report released that week, however, said the fuel tax holiday cannot be called a “reverse carbon tax” because it is tied to oil prices and only applies to two types of fuel: gasoline and diesel.

The report also said the tax holiday is more beneficial to higher-income families because they purchase more fuel compared to lower-income families.

“Relative to the carbon tax, which the government cites as an important motivation behind this policy, the holiday more than offsets it… The holiday, however, is not a ‘reverse carbon tax,'” the report reads.

In response to Kenney’s comments, Environment and Climate Change Canada (ECCC) said pricing carbon pollution is a central part of the federal government’s plan to reduce greenhouse gas emissions and is the lowest overall cost to the economy.

“Wherever the federal carbon pricing system is in place, all direct proceeds are returned to the jurisdiction of origin – the federal government does not keep one penny,” an ECCC spokesperson said.

READ MORE: How carbon pricing works across the country

The ministry also said the policy is designed so that most households receive more in Climate Action Incentive payments than they pay in increased costs because of the carbon tax. The federal government uses most of the proceeds to support individuals and households through Climate Action Incentive payments in Alberta, according to ECCC.

“Carbon pricing has been in place across Canada since 2019 through a mix of federal, provincial and territorial pricing systems. The federal government sets minimum national stringency standards that all systems must meet,” the ECCC spokesperson said.

“The federal carbon pricing system applies in any jurisdiction that requests it, or that does not implement its own system that meets these minimum standards.”

Gas price analyst says Alberta initiative will make a ‘big difference’ – Mar 7, 2022

© 2022 Global News, a division of Corus Entertainment Inc.

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Poilievre wants to topple the Liberal government with a non-confidence motion on the carbon tax

Story by John Paul Tasker

 • CBC

Conservative Leader Pierre Poilievre will introduce a non-confidence motion Wednesday designed to topple the government and trigger a federal election — a parliamentary manoeuvre that's likely to fail.

Poilievre and his party are ramping up the pressure on the Liberal government to drop a plan to increase the federal carbon tax.

The levy is set to rise by about 23 per cent on April 1, which means consumers can expect to pay about three cents more for a litre of gas than they do now.

"If Trudeau does not declare today an end to his forthcoming tax increases on food, gas and heat, we'll introduce a motion of non-confidence," Poilievre said at Conservative caucus meeting on Parliament Hill.

"Canadians cannot afford to eat, heat and house themselves," he said to a standing ovation from his MPs and senators. "I call for the House to be dissolved so Canadians can vote in a carbon tax election."

The non-confidence motion is likely dead on arrival because the NDP has agreed to prop up the government through 2025.

The government's supply-and-confidence agreement with the fourth party gives it enough support in the Commons to vote down such a motion.

The government has a plan to gradually raise the tax to $170 a tonne by 2030, an increase that eventually will add nearly 40 cents a litre to the price of gas. The levy also will increase the price of other fuels like natural gas and propane.

Poilievre has been on a cross-country "spike the tax" tour to stir up opposition to the federal climate change measure. Hundreds of supporters turned out in Halifax on St. Patrick's Day

The party also has tabled another opposition day motion in the House of Commons to force a vote on the increase itself. That vote will come later Wednesday.

The Conservatives also requested a separate "emergency" debate on the subject, a request that was denied Monday by Speaker Greg Fergus.

Related video: Poilievre plans a non-confidence motion on carbon tax (cbc.ca)

Duration 0:45 View on Watch

Global NewsPoilievre’s ‘axe the tax’ strategy faces skepticism

1:50

Global NewsPierre Poilievre holds rally in Halifax

2:14

Global NewsPolitical Panel: Should B.C. halt carbon tax hike?

8:04

The carbon tax is a central plank in the Liberals' climate policybook and they have strenuously opposed a years-long, Conservative-led attempt to overturn it.

The levy is designed to increase the cost of fossil fuels to encourage consumers and businesses to pursue cleaner, greener alternatives.

The government has said all of the money collected from the tax is returned to people through the Canada carbon rebate, a quarterly payment made based on family size.


Minister of Environment and Climate Change Steven Guilbeault makes a funding announcement at the Fletcher Wildlife Garden in Ottawa on Wednesday, Feb. 14, 2024. (Patrick Doyle/Canadian Press)© Provided by cbc

"Eight out of 10 Canadians, low-income to middle-income Canadians, get more money back than they're paying for carbon pricing. That is a reality, that is a fact. And as carbon pricing goes up, so does the carbon rebate," said Environment Minister Steven Guilbeault.

"That is one thing you'll never hear Pierre Poilievre talk about. The other thing you'll never hear Pierre Poilievre talk about is the impacts of climate change and how much it's costing Canadians."

But the government also levies HST on the carbon tax — income that goes into federal coffers.

The Parliamentary Budget Officer (PBO) has said Ottawa stands to gain about $600 million in the next fiscal year from this tax on a tax — funds that are not explicitly earmarked for climate initiatives.

The federal carbon tax was initially designed as a "backstop" measure that would only apply in provinces and territories that don't have carbon prices of their own in place.

Now, after a number of provincial governments dismantled their pricing programs, the federal tax is applied in eight provinces. B.C. has its own carbon tax while Quebec has a cap-and-trade program.

Canada's opposition filibusters overnight against PM Trudeau's carbon tax

Fri, December 8, 2023 

Canada's Prime Minister Justin Trudeau speaks as Conservative Party of Canada leader Pierre Poilievre listens during Question Period in the House of Commons on Parliament Hill in Ottawa

By Steve Scherer

OTTAWA (Reuters) - Canada's main opposition Conservative Party forced the House of Commons to sit overnight in a filibuster that it says will end when Liberal Prime Minister Justin Trudeau drops his carbon pricing system that it blames for fueling inflation.

Conservative leader Pierre Poilievre brought bags of fast food to his caucus after midnight and stood to move motions to "axe" the carbon tax until 6 a.m. ET (1100 GMT) - all of which failed.


Trudeau and much of the Liberal caucus also voted through the night to defeat the Conservative motions and slowly make progress on the passage of budget-related legislation that funds the various government departments.

"We have successfully killed a day of government business," Conservative House leader Andrew Scheer told reporters on Friday, his eyes puffy from lack of sleep.

"We are voting against the budget. We're just doing it in a little bit of a different way this time to highlight the fact that Justin Trudeau is going to radically increase the carbon tax," Scheer said. The carbon tax is set to increase over time.

Poilievre would win a majority if a vote were held today, polls show, and he has gathered momentum by accusing Trudeau of failing to protect Canadians from cost-of-living increases. Inflation exceeded 8% last year but in October it was just a notch above 3%. An election is not due until 2025.

The federal carbon tax, in effect since 2019, is Trudeau's signature climate policy and is intended to discourage use of fossil fuels and accelerate a switch to clean energy.

"We're not axing the tax," Trudeau told reporters in the House on Friday.

Canadians receive quarterly rebates to make the carbon tax revenue neutral, but Trudeau offered in October a three-year carve-out for home heating oil under pressure from Liberal lawmakers on the Atlantic coast.

That move appeared to confirm the Conservative view that the carbon tax was a burden on households and reignited debate over the policy.

Voting on the government supply legislation is about half over, Scheer said, so the filibuster is not likely to last into next week. The House will close on Dec. 15 for the holidays.

"Mr. Poilievre continues to gaslight Canadians for clickbait," Liberal House leader Karina Gould told reporters.

"They are literally trying to shut down the government, which is the page out of the extreme-right Republican handbook in the United States. Canadians have seen the dysfunction in Washington. They don't want that here in Ottawa."

(Reporting by Steve Scherer; Additional reporting by Dale Smith; Editing by Richard Chang)

Liberals, NDP criticize Poilievre's absence during late-night House sitting

CBC
Thu, December 7, 2023 

Conservative Leader Pierre Poilievre addresses the National Conservative Caucus in Ottawa on Wednesday, Dec. 6, 2023. (Sean Kilpatrick/The Canadian Press - image credit)

The Liberals and NDP are criticizing Conservative Leader Pierre Poilievre for being absent from the House of Commons as his party works to delay government legislation.

Poilievre said Wednesday his MPs will pitch "thousands of amendments" to legislation to keep Parliament sitting over Christmas if the Liberal government doesn't scrap parts of its carbon tax.

"You will have no rest until the tax is gone," Poilievre said in a message to Prime Minister Justin Trudeau and Liberal MPs.

The Tories are forcing delays by prompting 135 votes in the House, most of them on the government's estimates. The party said this will result in round-the-clock voting that likely will last until Friday evening and stall the Liberal agenda.

Poilievre held a fundraiser in Quebec on Thursday evening before spending time with members of the Montreal Jewish community at a synagogue that was recently hit by Molotov cocktails, a spokesperson told CBC News on background.

That didn't stop MPs from taking note of his absence from the House on Thursday evening. Some began chanting "Where is Pierre?" at the Conservative benches.

Conservatives responded with chants of "Where is Trudeau?" — Prime Minister Justin Trudeau was also absent. Deputy Speaker Chris d'Entremont promised to have MPs removed if the chanting continued.

Karina Gould, Leader of the Government in the House of Commons rises during question period in the House of Commons, in Ottawa, Tuesday, Nov. 21, 2023.

Karina Gould, leader of the government in the House of Commons, rises during question period on Tuesday, Nov. 21, 2023. (Adrian Wyld/Canadian Press)

Speaking to reporters before the voting marathon began Thursday evening, Government House Leader Karina Gould criticized Poilievre for his absence.

"Here he is yesterday claiming to Canadians that he's going to hold this government to account," she said. "Well, let's see if he shows up to vote."

Rules adopted in the wake of the pandemic allow MPs to vote virtually through an app; Poilievre, Trudeau and other MPs did that a number of times on Thursday evening. Poilievre's spokesperson told CBC the Conservative leader will be participating in every vote.

NDP House Leader Peter Julian also spoke to reporters about Poilievre's absence.

"The fact that Mr. Poilievre doesn't even have the courage to be here with the members of Parliament that are here all night shows how artificial his latest blocking tactic is," Julian said.

The Conservatives maintain they will carry out their obstruction tactics until the Liberals lift the carbon tax from all home-heating energy sources, pass a bill to grant carbon tax relief to some farmers and exempt all First Nations from the carbon levy, as some chiefs have demanded.

Poilievre put forward a motion calling on the government to meet those demands on Thursday but it was defeated.

Senate set to vote on carbon tax bill

The late-night House sitting comes as the Senate is set to have a final vote on a carbon tax carve-out bill that has been a lightning rod for controversy in the upper chamber.

Bill C-234 would remove the carbon tax from most natural gas and propane used on farms — other farm fuels like diesel and gasoline are already exempt under the Liberal tax regime. It's expected to be put up for a third vote in the Senate on Thursday evening.

The Conservative private members bill was passed in the House — without the support of the governing Liberal Party — without much fanfare. But the bill began to receive more attention after the Liberals announced a three-year carbon tax exemption for heating oil.

Conservatives used the Liberal exemption as a rallying point to call for C-234 to pass.

The ensuing debate in the upper chamber resulted in accusations of bullying and harassment by some senators.

The Senate voted 40-39 to amend the bill to limit the exemption only to propane used for grain drying. If the bill is passed with the amendment, the carbon tax would still apply to heating barns and greenhouses.

Ben Lobb, the MP who brought forward the bill, said Wednesday that he was "disappointed" with the Senate's change.

Ben Lobb, Conservative MP-elect for Huron-Bruce.

Conservative MP Ben Lobb, who sponsored Bill C-234, said the Senate's amendment was disappointing. (CBC News)

"The amendment that was passed last night in a way guts the bill and really diminishes the opportunity that was there, so close to have a good result for Canadian farmers," the Ontario MP told reporters.

Sen. Pierre Dalphond, who proposed the amendment, defended the change.

"The amendment rests on the fact that alternatives and efficiencies are readily available to reduce emissions related to heating and cooling of farm buildings, as compared to grain drying," he said in a media statement.

If the bill passes the third reading in the Senate, it will go back to the House for MPs to consider the changes made by the upper chamber.

'Greatest existential threat of our time': Ottawa makes carbon tax case in court

Climate crisis can't be fought only by the provinces, says federal government lawyer

Bob Weber · The Canadian Press · Posted: Dec 17, 2019 3:52 PM MT | Last Updated: 4 hours ago

Federal lawyers were in the Alberta Court of Appeal on Tuesday to defend Canada's national carbon tax, which is being challenged by the Alberta government. (Jeff McIntosh/The Canadian Press)

"The context of this case is the greatest existential threat of our time," said Sharlene Telles-Langdon in her opening arguments in support of Ottawa's carbon tax.

The law that brought in the tax is being challenged this week by Alberta in the province's Court of Appeal.

Ontario and Saskatchewan have also gone to their top courts to oppose the tax, but lost. They are appealing to the Supreme Court of Canada.

Ottawa argues its authority for the tax comes from the Constitution's peace, order and good government clause. Establishing minimum national standards on greenhouse gas emissions "is a matter of national concern that only Parliament can address."

• Government decreases carbon-tax rebate amounts for 3 provinces
• Kenney's claim carbon tax damaged Alberta economy is refuted in court documents

Telles-Langdon argued in court that the circumstances surrounding climate change have developed enough to make it a national concern. Much more is known about it, she said, and the severity of the threat has greatly increased.

"There has been a constitutionally important transformation," she said. "We're now in a situation where the dimensions of the problem are international and global."

The carbon tax flows from the federal government's right to sign international treaties, she added, and is part of living up to climate change accords such as the Paris Agreement.

"The treaties matter," Telles-Langdon said.

She told the five-judge panel that the carbon tax grew out of co-operation between the federal government and the provinces that began in 2016 after a first ministers meeting in Vancouver. The provinces agreed at that time that carbon pricing shouldn't make businesses in one province less competitive in comparison with others.

• Alberta's top court hears arguments on federal carbon tax

Several provinces already had carbon-pricing schemes at that time, she said.

"When this was signed, part of the agreement was that other provinces be brought on board."

She argued that the tax still gives provinces the flexibility to meet a minimum standard in their own way. She pointed to Alberta's recently approved levy on industrial emitters.

The federal lawyer faced repeated questions from judges about the scope of the legislation and how it would be implemented. In response to a question on whether Ottawa could simply ignore competitive pressures on Canadian businesses, Telles-Langdon pleaded with the court "to be reasonable about what Parliament does."

"The federal government has to be very cognizant of the economy of the country as a whole."

In Calgary, federal Environment Minister Jonathan Wilkinson said the Liberal government believes the tax will stand.

"The federal government remains confident that our arguments are very much valid and that we are well within our constitutional parameters to ensure that pollution from coast to coast to coast is priced.

"We fully expect to prevail in the Supreme Court."

• Watch live as Alberta Court of Appeal hears cases for and against carbon tax

On Monday, a lawyer for the Alberta government argued that allowing the tax law to stand would give the federal government a tool it could use to repeatedly chip away at provincial powers.

Peter Gall said issues of "national concern" are rare. Greenhouse gases don't meet the test, he said, and upholding the tax law would open the door to Parliament stepping into provincial matters whenever it wanted.

Lawyers for attorneys-general in Ontario and Saskatchewan have already presented arguments in support of Alberta's challenge.

Those representing New Brunswick and British Columbia are also to speak during the hearing. Eight First Nations, non-governmental groups and Crown corporations have been granted intervener status as well.

SEE Kenney's claim carbon tax damaged Alberta economy...

Moe says Saskatchewan to stop collecting carbon tax if no federal break given

Jeremy Simes, The Canadian Press

Premier Scott Moe says Saskatchewan is to stop collecting the carbon tax on natural gas if Ottawa doesn't offer a break, a move that has received unanimous support in the provincial legislature. 

Moe said Monday that starting Jan. 1, the provincial gas utility SaskEnergy won't collect or submit the tax to the federal government unless Ottawa provides the province an exemption. 

"The federal government may say that's illegal," Moe said in a video on the X platform, formerly known as Twitter.

"In most cases I would agree with that, but it's the federal government that has created two classes of taxpayers by providing an exemption for heating oil, an exemption that really only applies in one part of the country and effectively excludes Saskatchewan."

Prime Minister Justin Trudeau announced last week the carbon tax would be exempt for three years on home heating oil to address affordability needs. 

The move largely helps those in Atlantic provinces, where it's a main source for home heating.

Moe and Alberta Premier Danielle Smith have asked Trudeau to extend that exemption to cover all other forms of heating, including natural gas.

"As premier, it's my job to ensure Saskatchewan residents are treated fairly and equally with our fellow Canadians in other parts of the country," Moe said. 

Trudeau has denied the decision was about saving Liberal seats, but he did acknowledge it was something voters wanted. 

The federal government did not immediately respond to a request for comment. 

Saskatchewan's Opposition NDP said it supports Moe's move.

On Monday, NDP member Jared Clarke introduced a motion expressing concern over the exemption not applying to Saskatchewan. 

The motion also expressed displeasure with comments from Gudie Hutchings, the federal rural economic development minister, who told CTV last week that people in Western and Prairie provinces should elect more Liberals if they want to have conversations around potential exemptions.

A Saskatchewan Party member amended the motion to say the assembly supports not collecting or remitting carbon tax from natural gas if the "Liberal-NDP coalition" doesn't offer an exemption. 

The motion passed unanimously, 52-0. 

The legislative assembly is to send the contents of the motion, as well as a transcript of the debate, to Trudeau, NDP Leader Jagmeet Singh and Conservative Leader Pierre Poilievre. 

"I think there was enough agreement from both sides of the house that, at the heart of this, this shouldn't be about political games. This should be about fairness and getting relief for the people of this province," NDP Leader Carla Beck told reporters. 

Beck said she spoke with Singh's chief of staff on Monday, relaying her concerns about Saskatchewan not being exempt.

Dustin Duncan, the minister responsible for SaskEnergy, did not say how the utility would not remit carbon taxes, saying the province is still looking at its options. 

He said he hasn't spoken with his federal counterparts, adding he hopes Ottawa does not hit Saskatchewan with a legal challenge. 

"We have the ability to not follow the law and it'd be up to the federal government to decide (what to do)," he said. 

Natural gas prices have recently been lower than heating oil prices.

Alberta and Saskatchewan have long called on the federal government to scrap the carbon tax.

Beck said Moe could offer additional affordability, like scrapping various fee hikes and lowering utility bills. 

"It's pointing fingers while failing to do the things they could do today," she said.

Saskatchewan took Ottawa to court over the carbon tax in 2021, but lost its challenge when the Supreme Court deemed it was constitutional.

Along with the heating oil exemption, Trudeau announced Ottawa would increase the rebate top-up to rural Canadians.

This report by The Canadian Press was first published Oct. 30, 2023.

Saskatchewan and Alberta premiers ask for

extension of carbon tax exemption

Jeremy Simes, The Canadian Press

Two of Canada's Prairie premiers say Ottawa's decision to exempt the carbon tax on heating oil fails to address affordability needs in Alberta and Saskatchewan.

Prime Minister Justin Trudeau announced Thursday the carbon tax would be exempt for three years on home heating oil, a move that largely helps those in Atlantic provinces where it's a main source for home heating.

Saskatchewan Premier Scott Moe and Alberta Premier Danielle Smith say the exemption should also be applied to natural gas, as the majority of people in their provinces use it to heat their homes.

Smith says she's disturbed by the measure, adding it further creates a divide in the country.

"Question for the Liberal Government: Are we not Canadians, too?" Smith posted late Thursday on the X platform, formerly known as Twitter.

She wrote Friday that the federal government "has decided that one part of Canada with one type of home heating is worthy of a carbon tax break, while those living elsewhere using another type of home heating do not." 

Moe said the exemption shows the carbon tax is making life less affordable. 

"Just axe the tax on everyone and everything," Moe said Thursday on X. 

Alberta Opposition NDP Leader Rachel Notley said in a statement it's unacceptable for Ottawa to not apply the carbon tax equitably. 

“I am passionately committed to fighting climate change, reducing carbon emissions and seizing the economic opportunities that this brings," she said. 

“Yesterday, the prime minister moved Canada much further away from those goals."

She said she's to introduce a motion in the legislature that calls on "federal actions" to be applied equally, regardless of where people live or how they heat their homes.

Trudeau said people in other provinces are to also benefit from the exemption. 

The four Atlantic provinces started paying the federal carbon price in July, after provincial systems were deemed no longer strong enough to comply with federal standards.

The federal government also introduced a new clean fuel standard to offset emissions from gasoline and diesel. Both measures caused prices to spike.

Regional members of Parliament have been lobbying Trudeau for months for relief, as costs mounted in their ridings and voters grew increasingly angry about it. 

Trudeau denied the decision was about saving Liberal seats, but he did acknowledge it was something voters wanted.

Natural gas prices have recently been lower than heating oil prices. 

Alberta and Saskatchewan have long called on the government to scrap the carbon tax. 

Saskatchewan took Ottawa to court over the carbon tax in 2021 but lost its challenge when the Supreme Court deemed it was constitutional. 

This report by The Canadian Press was first published Oct. 27, 2023.

CANADA

Is the carbon tax an easy scapegoat for high food prices? OUI!

CBC
Sat, October 7, 2023

The Summerhill Market in Toronto on Wednesday February 2, 2022. The affordability argument against carbon pricing ignores some inconvenient facts. (Frank Gunn/The Canadian Press - image credit)

Seven years ago this week, Justin Trudeau stood in the House of Commons and announced that his government would implement a national price on carbon emissions.

It remains one of the boldest and most consequential decisions of his time in office. It's also one of the most loudly contested — even after two federal elections that might have been expected to settle the issue.

This week, the House voted on yet another Conservative motion calling on MPs to condemn the carbon tax — the Official Opposition's fifth such motion in the last 12 months. This time, the Conservatives were able to win the support of one Liberal backbencher — Ken McDonald, who represents the Newfoundland riding of Avalon — illustrating the public consternation Liberal climate policies are facing in Atlantic Canada.

But the Conservatives are also hammering away with television ads that blame the carbon tax for the high price of groceries, an argument that might hold particular power as Canadians prepare to celebrate Thanksgiving.

Pierre Poilievre, leader of the Conservative Party of Canada, is pictured during a press conference in Vancouver, B.C, on Thursday, September 14, 2023.

Conservative Leader Pierre Poilievre's statements about the impact carbon pricing has on affordability ignore one big factor: the rebates. (Ben Nelms/CBC)

"Mr. Speaker, when one taxes the fuel of the farmers who make the food and the fuel of the truckers who ship the food, then one taxes all those who buy the food," Conservative Leader Pierre Poilievre told the House this week, ably reenacting his party's ads.

This period of high inflation certainly presents a fresh political test for any climate policy that creates a new cost for industry or consumers. But in the debate about food prices, the carbon tax is being saddled with an outsized and undeserved role — one that, ironically, distracts from the very real impact climate change and extreme weather are having, and will have, on the cost of groceries.

What's really driving up food prices?

It's not that the carbon tax has no impact on food prices and inflation. It's just not obvious that it is having a particularly large impact.

The Bank of Canada has estimated that the carbon tax increases inflation by 0.15 per cent. Trevor Tombe, an economist at the University of Calgary who has studied the impact of the carbon price on consumer costs, points to Statistics Canada data that suggests its impact on food prices is less than one per cent.

That's not nothing, and every dollar counts when it comes to the cost of essentials, particularly for those on low incomes.

But concerns about the impact of the carbon tax also tend to ignore the fact that the policy has two parts — a fuel charge collected by the federal government and a rebate that returns 90 per cent of the revenue generated by the levy to Canadian households. (The remaining 10 per cent is directed toward businesses, farmers and Indigenous communities.)

Unlike any number of other federal and provincial policies that might be said to contribute to the cost of food — from corporate taxes to food safety regulations — the federal carbon tax comes with a rebate.

The parliamentary budget officer has consistently found that nearly all households receive more from the rebate than they pay in direct and indirect costs. Only households in the highest income quintile are projected to pay out more than they receive — because they consume more. Repealing the carbon tax could actually leave many Canadians worse off.

Recent polling suggests a sizeable number of Canadians like the idea of reducing or eliminating the carbon tax. Maybe the same would be true of a poll about any kind of tax. Regardless, the Liberals might need to redouble efforts now to make the case for one of Trudeau's signature policies.

But any discussion of food prices has to include the impact of climate change — the very problem that the carbon tax is meant to help combat.

An analysis from Statistics Canada published last November linked "erratic weather" — including droughts, heat waves, flooding and heavy rainfall — with increases in the prices of meat, fruit, vegetables, sugar and coffee. In June, economists at RBC reported that, while food price inflation was expected to slow, a return to pre-pandemic prices was unlikely — in part because "extreme weather events are becoming more frequent across different regions and could meaningfully limit farm production."

. Provincial government ministers are scheduled to visit the region Thursday for an update on the work taking place to rebuild the road that connects Spences Bridge with Merritt.Mud and debris covers a farm on the Nicola River that was destroyed by flooding in November, west of Merritt, B.C., on Wednesday, March 23, 2022.

 (Darryl Dyck/The Canadian Press)

Other sources of inflation cited by RBC include Russia's invasion of Ukraine, supply chain disruptions and labour shortages. And Canada is hardly alone in feeling the impact on food prices.

Kelleen Wiseman, academic director of the master of food and resource economics program at the University of British Columbia, said price increases from extreme weather events typically are temporary. But Mike von Massow, a professor of food economics at the University of Guelph, said "the impact of climate [on food prices] is at least an order of magnitude bigger than the impact of the carbon tax."

"I think that there is little doubt that extreme weather, the increasing frequency and severity, is not only causing food price inflation but will lead to ongoing greater instability in food prices," vow Massow said. "It'll be much more difficult to predict where we're going because of the unpredictability of these weather events."

In hopes of containing prices, the federal government has put its focus on major retailers. Von Massow said that what's really needed is a broader "food system discussion" that brings all the players together to talk about building a resilient, integrated system that can withstand the forces that climate change is unleashing.

Why is the carbon tax taking the blame?

Tombe, who has also dismissed the utility of blaming retailers, has suggested it would make more sense to look at dismantling the supply management system for dairy and poultry in Canada. Regardless of how one feels about that proposal, it's at least interesting to note that no political party is choosing to make supply management a target right now — while scorn is being heaped on the carbon tax.

Across the federal parties, support for supply management is virtually unanimous. Killing it might lower prices of milk, eggs and chicken for consumers. But the major parties apparently have calculated that the political and practical benefits of the system outweigh its costs — that the trade-offs are worth it.

The Bryanton family has been farming in Belmont-Lot 16 for over 35 years. They got in to the dairy industry in 2006 and also farm about 700 acres of land.Supply management retains broad support in mainstream Canadian politics, even though it drives up the cost of food.

 (Nicola MacLeod/CBC)

The presence of the rebate minimizes the degree to which the federal carbon tax requires any kind of trade-off. But to the degree carbon pricing does increase costs for fuel and other goods, the trade-off is reducing the greenhouse gas emissions that cause climate change.

Economists have long argued that putting a price on carbon is the least expensive way to drive emissions down. And Trudeau is hardly alone in accepting that logic. According to the World Bank, 23 per cent of global emissions are now covered by some kind of pricing policy — up from 13 per cent in 2016.

The federal carbon tax might someday come to be as politically untouchable as supply management. For now, the Conservatives seem to believe it's in their interests to direct anger at the carbon tax — even while they seem unable to say what they would do instead to reduce emissions.

But if climate policy is going to be scapegoated every time the price of groceries goes up, Canada is going to have a very hard time sustaining a serious response to climate change.

Trudeau’s Government Launches Plan to Stabilize Canada’s Food Prices

Laura Dhillon Kane
Thu, October 5, 2023 



(Bloomberg) -- Prime Minister Justin Trudeau’s government outlined the first steps of a plan to stabilize food prices as Canadians continue to hammer his Liberal Party in the polls over the high cost of living.

Industry Minister Francois-Philippe Champagne and Finance Minister Chrystia Freeland provided details on Thursday, several weeks after meeting with executives of grocery stores and food manufacturers.

Champagne said the top five grocery chains — Walmart Inc., Loblaw Cos., Metro Inc., Empire Co. and Costco Wholesale Corp. — have agreed to support efforts to restore price stability to store shelves. Shares of the Canadian grocers showed little immediate reaction to the news.

Canadians can expect to “soon” see aggressive discounts across a basket of key food products for most households, as well as price freezes and price-matching campaigns, he said.

“Bottom line, we’re going to hold their feet to the fire,” Champagne said.

Trudeau announced last month that his government would demand grocery-store executives restore price stability as part of a suite of measures aimed at making life more affordable. The skyrocketing cost of food and housing in Canada has plunged the prime minister’s popularity to career lows in many polls.

Trudeau has decried grocers for making “record profits” while Canadians struggle to put food on the table, pushing food-bank use to new heights.

Grocery inflation slowed to 6.9% in August compared with 8.5% in July, but it still outpaced headline inflation of 4%.

If the government doesn’t see results from grocers and food manufacturers, it will take additional action including potentially imposing a tax on grocers, the ministers warned on Thursday. “No measures are off the table,” Freeland said.

Champagne rejected criticism from industry observers who say food inflation is expected to slow in coming months regardless of his government’s efforts, and that many grocers typically freeze prices over the winter holiday season, refusing to accept price hikes from suppliers during a crucial shopping period.

The minister said each of the five major grocers provided him with individual plans to stabilize prices and those initiatives will have an impact. “If you look at the measures they’re looking to take, for example a basket of discounted goods, the extent of that and the scope of it is more than what we have seen in Canada.”

The grocers will also be forced to compete with each other as their plans roll out and they see lower prices elsewhere, he said. “What we have been able to create in Canada is a competitive pressure that did not exist before.”

Keeping food prices as low as possible has been the top priority for Canada’s grocers since inflation surged at the end of the pandemic, said Michelle Wasylyshen, spokesperson for the Retail Council of Canada, in a statement.

Canada’s food inflation is lower than that of many other developed countries including the UK, Australia and France, and should fall further in coming months as input costs start to ease. Between 70% and 80% of checkout prices are determined before the food hits the shelves, she said. “It therefore remains critical that all members of the complex supply chain address their respective roles in food pricing.”

Champagne has said he also met with food manufacturers, including Nestle and Kraft Heinz Co., and urged them to play a role in slowing food inflation.

He also announced Thursday that the government will strengthen the Office of Consumer Affairs by creating a Grocery Task Force, which will monitor the grocers and manufacturers on a monthly basis and investigate practices such as “shrinkflation,” in which the price of an item remains stable but the weight or size gets smaller.

The government will also speed up industry-led work to establish a Grocery Code of Conduct to support fairness and transparency across the sector, as well as create a data hub for food price information including the cost breakdown throughout the supply chain, he said.

Trudeau’s government has also introduced a bill to amend the Competition Act in an effort to boost competition in the grocery sector, though the changes will affect all industries.

The government is also facing pressure to reduce its fiscal footprint, and to that end, Treasury Board President Anita Anand announced new guidelines for public sector managers who contract out professional services.

Bloomberg Businessweek

GOP group claims its carbon tax is better for the economy than climate mandates
by Josh Siegel, Energy and Environment Reporter | WASHINGTON EXAMINER
| December 18, 2020 

A Republican-backed group pushing for Congress to pass a carbon tax is out with a new study Friday showing it would achieve the same level of emissions reductions as a regulatory approach while producing better economic outcomes.

The group, the Climate Leadership Council, is seeking to shore up support for its carbon tax and dividend proposal as policymakers have gravitated toward other ideas.

Democrats, including President-elect Joe Biden, are instead embracing regulations and mandates for combating climate change, while Republicans oppose new taxes or regulations and are offering more limited policies. The council, led by former Republican Secretaries of State James Baker III and George Shultz, is seeking to counter that.

“The intent of this study was not to criticize any particular regulation, however, if our objective is to find a global solution to climate change and rapidly decarbonize in a way that promotes the economy and where U.S. families come out ahead, it’s clear our solution is the best approach,” Greg Bertelsen, CEO of the Climate Leadership Council, told the Washington Examiner.

The council commissioned the firm NERA Economic Consulting to model its proposal for a carbon tax beginning at $40 per ton, increasing 5% every year. The proposal, dubbed a “carbon dividend,” would return the revenue to taxpayers through equal quarterly payments to offset higher energy prices.

The study found the plan would cut carbon emissions in half by 2036, about the same as an approach featuring a mixture of regulations and mandates.

But the carbon dividends policy results in an additional $190 billion per year in gross domestic product, on average, and by 2036, annual GDP is $420 billion higher under that method.

The subsidy to taxpayers also would translate into greater purchasing power for households, as most lower- and middle-income people would collect more in dividends than they pay in increased energy costs.

By 2036, annual consumption per household is $1,260 higher with the carbon dividends approach than projected under the regulatory scenario.

The study attributes those benefits to the idea that the “price signal” from the tax would encourage energy producers and other businesses across the economy to switch to cleaner, non-fossil fuel alternatives.

By contrast, a regulatory approach that tackles each economic sector on its own is more siloed and could force some sectors to make higher-cost reductions.

The regulatory scenario projected in the study would consist of a mixture of policies.

These include a clean energy standard for electricity and efficiency targets for homes and buildings, a subsidy program to accelerate the adoption of electric vehicles, requirements for coal plants to adopt carbon capture technologies, stricter vehicle fuel efficiency standards, and a ban on fossil fuel leasing on federal lands.

Biden has broadly endorsed most of those policies, while his climate plan, as he proposed in the campaign, does not mention a carbon tax. But Bertelsen said the council is “delighted” that Biden is nominating Janet Yellen to be his Treasury Department secretary. Yellen, an economist and former Fed chair, is a longtime carbon tax supporter who has specifically endorsed the dividend approach as a founding member of the council.

“We know in working with Dr. Yellen that she cares deeply about finding a pragmatic solution to climate that promotes economic growth,” Bertelsen said.

Critics of carbon taxes say it’s attractive in theory but does not stand up to political reality.

Carbon taxes have routinely been rejected by voters in states, while more than half of states have been able to enact some form of clean electricity standard or mandate.

“I really worry that the ONLY carbon tax/dividend scenario that is examined is an idealized system and there is no evidence that such a system could exist in the real world,” David Victor, a professor at University of California San Diego’s School of Global Policy and Strategy, told the Washington Examiner in an email.

Joseph Majkut, director of climate policy at the Niskanen Center, said that "regulations might have more immediate traction" but "a carbon tax offers efficiency and well-understood designs to help households."

Noah Kaufman, an economist at Columbia University Center on Global Energy Policy, said the council’s study adds to a “mountain of evidence showing that some form of carbon pricing is going to be part of a cost-effective decarbonization strategy.”

But Kaufman told the Washington Examiner that a carbon tax would be more effective if it were implemented alongside a portfolio of other climate policies, including regulations and standards.


“So, to some extent, this study sets up a false choice, because I'd expect some combination of the two scenarios to be more cost-effective than either one,” said Kaufman, who used to work at NERA Economic Consulting but was not involved with its study for the council.

Five-fold jump in carbon tax would help Liberals reach climate targets, but may challenge competitiveness

Geoffrey Morgan POSTMEDIA
\

© Provided by Financial Post 

Prime Minister Justin Trudeau listens to Minister of the Environment and Climate Change Jonathan Wilkinson during a news conference Friday.

CALGARY — The federal Liberal government unveiled sweeping new climate change policies Friday, including plans for a five-fold increase in carbon taxes over the next 10 years, in a move that raises fresh concerns about affordability and competitiveness of trade-exposed industries even as Canada now appears poised to meet its 2030 climate targets.

“The clean growth economy is not some utopian idea that might happen far off into the future,” Environment and Climate Change Minister Jonathan Wilkinson said Friday as Ottawa unveiled new policies aimed at reducing the country’s carbon emissions, which included a higher federal carbon tax, more green spending and changes to the anticipated Clean Fuel Standard regulations.

The new policies were immediately praised by environmental groups such as Greenpeace, which called it “a serious and well-thought out plan to achieve our 30 per cent reduction target.”

But Alberta’s business executives are concerned about the impact on energy-intensive, trade-exposed industries such as natural resource extraction and manufacturing.

Business Council of Alberta president and CEO Adam Legge called the plans announced Friday “extreme growth of the carbon tax,” and said it would be important for the federal government to impose a border adjustment tax on carbon for trade exposed industries in order to level the playing field for domestic companies.

“We encourage the federal government to explore border adjustments,” Legge said.

As Ottawa plans to ramp up carbon taxes, it also announced $15.2 billion in new spending on climate and infrastructure initiatives in an effort to hit its 2030 climate targets that were set as part of the Paris Climate Agreement in 2016.

The $15.2 billion in funding includes money for hydrogen, electric vehicle infrastructure and incentives for existing industries to decarbonize operations, Clean Energy Canada executive director Merran Smith said in a release, which called Friday’s announcement “a comprehensive and honest plan to get Canada to beat its 2030 climate target.”

The updated climate plan calls for a more than five-fold increase in carbon taxes from current levels of $30 per tonne to $170 per tonne by 2030.

“Canada wasn’t going fast enough so I think this provides the incentive (to invest in emissions-reducing technologies) and it will allow us to play on the world stage and attract capital back to our industries,” said Audrey Mascarenhas, president and CEO of Questor Technologies Inc., a Calgary-based clean-technology company.

Mascarenhas said her company’s technology can create carbon offsets for oil and gas companies at a cost of $2 per tonne, and so she expects a $170 per tonne carbon tax will drive more investment in the clean-tech sector.

The increases to the carbon tax would come in $15-per-tonne phases increments each year beginning in 2023 and would mean that by 2030, consumers would pay 37 cents per litre in carbon levies for their gasoline and an additional $5.36 per gigajoule to heat their homes with natural gas

.

© Peter J. Thompson/National Post files 

By 2030, consumers would pay 37 cents per litre in carbon levies for their gasoline.

That would imply that the carbon tax for natural gas would be roughly double the current price of the commodity, which averaged US$2.27 per GJ in Ontario on Thursday and US$1.96 per GJ in Alberta.

The oil and gas industry has been looking for some clarity on how carbon taxes will change over time and Friday’s announcement provides a timeline and price, said Tristan Goodman, president of the Explorers and Producers Association of Canada, which represents mid-sized oil and gas companies including most of the country’s natural gas producers.

“It does give us some stability around the carbon price so we can start to implement some of those green technologies,” Goodman said, adding there are concerns about whether consumers can absorb the higher costs.

The policy document released Friday, titled “A Healthy Environment and A Healthy Economy,” also signalled that natural gas would not be subject to the soon-to-be-announced Clean Fuel Standard. The Financial Post reported Thursday that the industry is expecting Ottawa to unveil CFS regulations before the end of the year.

The new fuels regulations are now expected to focus strictly on liquid fuels such as gasoline and diesel and ignore gaseous fuels and solid fuels like coal.

Goodman called the exemption for natural gas, as well as other gaseous fuels, “a wise, sensible decision” that will prevent natural gas prices from heading “significantly higher.”

New fuel regulations will exempt natural gas.

A typical family in Alberta uses about 100 GJs of natural gas per year to heat their homes, so a $170 per tonne carbon tax will result in an increase of approximately $500 per year cost for a household, said Trevor Tombe, economist at the University of Calgary.

But Tombe added that carbon tax rebates are also poised to rise to $3,200 per year by 2030, or $800 every three months.

“These are getting to be pretty significant,” Tombe said, adding the rebates won’t eliminate the “substitution effect” of the policy, because families will be able to spend their rebates on energy efficiency measures to reduce their need for heating fuels or for other expenses.

Tombe said that, based on existing research, a $170 per tonne carbon tax would lead to an emissions reduction of approximately 150 million tonnes, or a 25 per cent cut in the country’s total emissions.

“Basically, that’s going to get you right in line with the 2030 target. Layer on top of that the Clean Fuel Standards, we are on track to exceed the 2030 target by potentially as much as 50 million tonnes,” Tombe said.

Rebates and credits for building retrofits will help create work for tradespeople but the policies announced Friday could also hurt resource industries across the country, Sean Strickland, executive director of Canada’s Building Trades Unions, said in a release Friday.

“The government needs to do more than issue a statement about creating jobs; but must align their climate strategy to secure the middle-class jobs that work in the resource sector,” Strickland said.

Ontario Premier Doug Ford said Friday he was “floored” by Ottawa’s plan. Fellow Conservative politicians in Alberta expressed similar shock.

“This is not the time to even be considering increasing the cost of living for the people of Alberta,” Alberta Environment and Parks Minister Jason Nixon said at a Friday press conference, noting that the COVID-19 pandemic has induced a recession in the country.

“We promised Albertans we would fight this all the way to the Supreme Court and we have fought this,” Nixon said.

Alberta’s business executives are concerned about the impact on energy-intensive, trade-exposed industries such as natural resource extraction and manufacturing.

Prime Minister Justin Trudeau told reporters Friday that he expects voters would have the chance to weigh in on the rising carbon tax with an election.

“I’ve always said that there will be elections before the price is increased in 2023,” Trudeau said, noting that the Liberals have a minority government in Parliament and an election is expected before 2023.

Trudeau did not answer whether a new plan would be needed in the event Alberta’s legal challenge to the carbon tax wins at the Supreme Court, but reiterated that most Canadians support action on climate change.

With a file from Canadian Press

• Email: gmorgan@nationalpost.com | Twitter: geoffreymorgan