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e-2542 (Taxation)
- Keywords
- Carbon pricing
- Carbon tax
- Tax refunds
Original language of petition: English
Petition to the Government of Canada
- Canada has a national carbon pricing policy, legislating all provinces and territories to set a minimum and rising carbon fee—an important step to help Canada in its transition to clean energy;
- In those provinces and territories where the federal backstop applies, we receive “Climate Action Incentives” through Line 45110 in our tax returns, and 80% of us come out ahead;
- Canada’s federal backstop carbon pricing policy is similar to the carbon fee-and-dividend solution, as recommended by 27 Nobel Prize-winning economists, climate scientist Dr. James Hansen, and Citizens’ Climate Lobby;
- Canada’s carbon price will increase to $50 per tonne in 2022, but that will not be enough to meet Canada’s goal of reducing greenhouse gas emissions to 30% below 2005 levels by 2030;
- Modelling by Canada’s Ecofiscal Commission shows that Canada must increase the price of carbon to $210 per tonne by 2030 to meet Canada’s current greenhouse gas emission target; and
- Unless the rebates that voters receive are readily apparent as a cheque or bank deposit (rather than an income tax adjustment), an increase in carbon price to $210 per tonne or more will not be acceptable to many voters.
Response by the Minister of Environment and Climate Change
Signed by (Minister or Parliamentary Secretary): The Honourable JONATHAN WILKINSON
The Government of Canada has a plan to fight climate change, drive clean economic growth, and build resilience to a changing climate. This plan includes pricing carbon pollution as a foundational pillar.
Pricing carbon pollution is the most efficient way to reduce greenhouse gas emissions. A well-designed price on carbon pollution provides an incentive for climate action and clean innovation, while also protecting competiveness and preventing carbon leakage. The Pan-Canadian Approach to Pricing Carbon Pollution, released in October 2016, gives provinces and territories the flexibility to implement carbon pricing systems tailored to their jurisdiction’s unique needs and circumstances, as long as they meet minimum stringency criteria. The federal carbon pollution pricing system applies in any jurisdiction that requests it or that does not implement its own system that meets federal stringency requirements.
Canada’s climate plan is working. Canada’s 2019 GHG emissions projections show a widespread decline in projected emissions across the economy, reflecting the breadth and depth of the Pan-Canadian Framework. In fact, the policies and measures now in place, including those introduced in 2019, are projected to reduce emissions by 227 million tonnes in 2030, the greatest drop in Canadian history. However, the Government of Canada recognize that more action is needed. This is why the Government will bring forward a plan to exceed Canada’s 2030 climate goal. As part of its plan, the Government will:
- Create thousands of jobs retrofitting homes and buildings, cutting energy costs for Canadian families and businesses;
- Help deliver more transit and active transit options;
- Make zero-emissions vehicles more affordable while investing in more charging stations across the country;
- Set legally-binding, five-year emissions reduction milestones based on the advice of experts and consultations with Canadians;
- Appoint a group of scientists, economists and experts to recommend pathways to net-zero;
- Support investments in renewable energy and next-generation clean energy and technology solutions;
- Work with businesses to make Canada the best place to start and grow a clean technology companies;
- Invest in reducing the impact of climate-related disasters, like floods and wildfires to make communities safer and more resilient;
- Complete all flood maps in Canada; and,
Plant two billion incremental trees over the next 10 years, as part of a broader commitment to nature-based solutions that also encompasses wetlands and urban forests.
The Government of Canada has committed to report back on our progress. The Minister of the Environment will report annually to Parliament on the Greenhouse Gas Pollution Pricing Act. As committed under the Pan-Canadian Framework on Clean Growth and Climate Change, we will also review the overall approach to pricing carbon pollution by early 2022 to confirm the path forward, with an interim report in 2020. These review processes will include consideration of the carbon price trajectory after 2022.
October 6, 2020 (Petition No. 432-00074)
