80% of Canadians live in jurisdictions with a price on carbon pollution in 2017
A new analysis by Environment and Climate Change Canada says that pricing carbon can significantly reduce carbon pollution while maintaining a strong and growing economy, according to a press release.
The study found that, by 2022, a nation-wide price on carbon pollution that meets the federal standard would eliminate 80 to 90 million tonnes of greenhouse gas emissions – making a major contribution to meeting Canada’s climate target under the Paris Agreement.
The analysis says carbon pricing a cost-effective way to significantly reduce pollution while driving clean innovation and creating new jobs.
A price on carbon works because it creates incentive with people and businesses to cut pollution while saving money by making upgrades through things like new equipment or finding other efficiencies, according to the press release.
While many studies show the benefits of pricing carbon, with varying results for different methods of doing so, many Canadians are not so sure. According to Abacus Data, 74% of Canadians say taking action to solve climate change should be a high priority, but all 13 other items tested were considered higher priorities, or priorities by more people.
In Alberta, 68% believe it is a good idea for the economy to transition to a reliance on lower carbon energy sources who say this would be good for their provincial economy.
By a wide margin, Canadians would prefer governments put more rather than less emphasis on reducing greenhouse gas emissions. But “doing more” doesn’t necessarily equate to “taxing carbon”.
More are drawn towards ideas that seem less painful, such as “rules and regulations” or, “subsidies to encourage the adoption of low carbon technologies,” according to Abacus Data.
“Experience from Canada and around the world confirms that pricing pollution works: it spurs clean innovation and growth, creates good middle-class jobs and gives families and businesses an incentive to make choices that will help them save energy and money. The environment and the economy go hand in hand,” said Catherine McKenna, minister of the Environment and Climate Change.
The study found that, by 2022, a nation-wide price on carbon pollution that meets the federal standard would eliminate 80 to 90 million tonnes of greenhouse gas emissions – making a major contribution to meeting Canada’s climate target under the Paris Agreement.
Eighty percent of Canadians live in jurisdictions that have a price on carbon pollution, and in 2017, those provinces – British Columbia, Alberta, Ontario and Quebec – had the strongest GDP growth in Canada.
Alberta, British Columbia, Ontario and Quebec have opted to reinvest the revenues from pricing in their provinces through measures like:
- targeted rebates or tax cuts to households and businesses
- clean growth investments that benefit individuals and business, such as home retrofit programs, support for businesses with clean solutions, and better public transit.
The Government study also found that GDP growth would remain strong with a nation-wide price on carbon pollution. Canada’s GDP is expected to grow by approximately two per cent a year between now and 2022 – with or without carbon pricing.
Pricing carbon pollution could help Canadian companies create jobs and compete successfully in the global shift to cleaner growth – an opportunity the World Bank estimates will be worth $23 trillion globally between now and 2030
“Canadians expect the federal government to take serious, practical and cost effective action on climate change while positioning Canada to take advantage of the trillion dollar opportunity in the clean growth economy. All parties in Parliament support meeting our Paris Agreement targets – and any credible plan to fight climate change must include a price on pollution,” said McKenna.
Each province and territory is responsible for designing a carbon pricing system that meets the federal standard. The federal government has been clear that revenues from pricing pollution will remain in the jurisdiction they come from.
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