Canada91裸聊视频檚 price on pollution is supposed to help battle global warming, but as it nears its fifth anniversary, nothing in Canadian politics is hotter.
Conservative Leader Pierre Poilievre has so successfully convinced Canadians the carbon price is to blame for inflation that he even earned begrudging respect for his 91裸聊视频渁xe the tax91裸聊视频� campaign from Prime Minister Justin Trudeau.
Of course, Trudeau doesn91裸聊视频檛 agree with Poilievre91裸聊视频檚 sentiment.
But he has acknowledged the Tory leader91裸聊视频檚 message is working in an atmosphere where the cost of living is dominating the discussion around most dinner tables, as it has for months, if not years.
Trudeau was even convinced to upend his signature climate policy in October, removing it from heating oil for three years following relentless pressure from his Atlantic caucus and a nosedive in polling support on the East Cost.
There are some arguments for the move. Heating oil costs four times more than natural gas, so while carbon pricing was designed to create more reasons to switch to greener fuels, the incentive was already there.
But the reaction was swift. Premiers in other provinces immediately demanded the same treatment for natural gas, which is more prominent as a heating source outside of Atlantic Canada.
Saskatchewan Premier Scott Moe is pledging to simply stop collecting the carbon price for the federal government in January.
The new premier of the Northwest Territories demanded a full exemption from carbon pricing for his communities, noting fuel has been so expensive in the North for so long that if there were alternatives, people already would have made the switch.
And First Nations in Ontario launched a lawsuit arguing they91裸聊视频檙e being left out of the carbon price rebate program, because people only get it if they file federal income taxes. Many people working on reserves do not.
Meanwhile, a Conservative private member91裸聊视频檚 bill bill looking for an exemption for carbon pricing on natural gas and propane used on farms shot into the spotlight, as Poilievre made passing it a priority.
Bill C-234 passed the Senate in mid-December with multiple amendments that require it to go back to the House of Commons for another vote.
The amendments now limit that bill to temporarily exempting propane used for drying grain. If it passes with support from the Conservatives, NDP and Bloc Qu茅b茅cois, who all voted for the bill the first time, it will mean another exemption.
All of these things make clear that the carbon pricing conflict will continue well into 2024.
Trudeau is firm that he isn91裸聊视频檛 opening the door to any more exemptions.
Liberals are willing to work with First Nations to ensure the rebate system works better for them, or discuss possible tweaks with the Northwest Territories. But the prime minister said there would be absolutely no further carve-outs.
Michael Bernstein, executive director of the advocacy group Clean Prosperity, said he believes Trudeau.
91裸聊视频淚 don91裸聊视频檛 anticipate that the current federal government is going to further dismantle or 91裸聊视频� exempt the program that they have in place,91裸聊视频� Bernstein said.
If Poilievre does win the next election, the consumer side of carbon pricing will surely disappear as fast as he can put pen to paper.
91裸聊视频淚t91裸聊视频檚 very clear where Mr. Poilievre stands on this issue,91裸聊视频� Bernstein said.
But carbon pricing is a complicated policy that isn91裸聊视频檛 just about a fuel levy at the gas pumps or on home heating bills.
Poilievre91裸聊视频檚 91裸聊视频渁xe the tax91裸聊视频� mantra hasn91裸聊视频檛 been clear about exactly how much of the plan he would eliminate. He has signalled an openness to maintaining some form of industrial carbon pricing.
The consumer carbon price, or what Ottawa calls the fuel charge, is applied to fossil fuels people buy to run their cars, heat their homes or keep the lights on.
Big industrial emitters 91裸聊视频� more than 560 organizations and companies including oilsands, mines, automakers and natural gas power plants 91裸聊视频� don91裸聊视频檛 pay the carbon price on the fuel they buy to operate. Instead, they pay it on a portion of what they actually emit.
The system is similar to one that former Conservative prime minister Stephen Harper planned but didn91裸聊视频檛 implement in 2007.
In both versions, companies that emit more than a set limit pay a price.
Most economists agree that carbon pricing is the most effective way to reduce emissions, and business leaders generally prefer it.
91裸聊视频淔rom an economist91裸聊视频檚 kind of thinking, it is just the most efficient way to reduce emissions with the least government interference or mandates or regulations,91裸聊视频� said Heather Exner-Pirot, a special adviser on energy policy at the Business Council of Canada.
91裸聊视频淚t just focuses on emissions. And if you can reduce emissions, you pay a lower price. So it91裸聊视频檚 very simple. It doesn91裸聊视频檛 pick and choose favourites, doesn91裸聊视频檛 pick and choose sectors. It lets the market do all of the work.91裸聊视频�
The Liberals have both carbon pricing and regulations in place, and sometimes those policies compete with each other.
Regulations are more prescriptive and usually costlier to implement, Exner-Pirot said, and businesses would generally prefer a carbon price alone.
Climate change carries its own hefty price tag, but any policy to address it will also come at a cost to businesses and families.
Harper himself acknowledged that in 2007, telling the Toronto Star in an interview: 91裸聊视频淵ou cannot reduce greenhouse gas 91裸聊视频� you cannot mandate it 91裸聊视频� without there being some economic cost in the short term.91裸聊视频�
Consumers currently pay about 14 cents in carbon price for each litre of gasoline, and 12 cents for each cubic metre of natural gas. They get money back through a rebate the Liberals call a 91裸聊视频渃limate action incentive.91裸聊视频�
Ninety per cent of the revenues from carbon pricing are returned to households this way, with the other 10 per cent going to climate grant programs for small businesses and government organizations like schools and hospitals.
The rebates are intended to keep most families from losing money from carbon pricing, while leaving an incentive to save more by lowering fossil-fuel consumption. People get the same amount no matter how much fuel they use.
The Parliamentary Budget Office says when the carbon price hits $170 per tonne in 2030, the average Canadian household will get $388 more from the rebate than they pay for carbon pricing. Lower-income households that pay less in fuel will benefit even more.
Much of the burden will be on small businesses, which pay the carbon price but don91裸聊视频檛 get rebates, though they can apply for grants to help reduce emissions.
The Canadian Federation of Independent Business estimated in March that small businesses pay almost half the total revenues collected from the carbon price, most of which goes back to consumers.
Getting rid of carbon pricing would leave a majority of families with less money and could have major international implications.
Europe is likely to start imposing border adjustments or import taxes on goods from countries that don91裸聊视频檛 have a minimum carbon price.
91裸聊视频淭his has to be a consideration,91裸聊视频� said Bernstein.
91裸聊视频淔or Canada, maintaining competitiveness internationally for our exports may be partially a function of whether we have an effective carbon pricing program.91裸聊视频�
But he acknowledged that91裸聊视频檚 a tough sell at home.
A Leger poll for The Canadian Press in September found that while nearly three in four respondents were anxious about climate change, only two in five wanted to change their behaviour if it costs something.
Support tends to be higher when Canadians are asked more specific questions that explain the carbon rebate system, Bernstein said, adding the federal Liberals have been terrible at communicating about it.
At first, the confusing-sounding 91裸聊视频渃limate action incentive91裸聊视频� was initially included as a line item on tax returns. Now it comes in as a quarterly direct payment, similar to those for families of young children, seniors and people with disabilities. But many still don91裸聊视频檛 understand what it is.
Exner-Pirot said the constant political battle over whether carbon pricing is going to remain in place is harmful because it reduces predictability.
But even if voters choose a leader who would dismantle the system, businesses will continue with their own climate plans, she said, though timelines could shift if carbon pricing or regulations disappear.
91裸聊视频淭hey have made commitments in their business plans to their shareholders that they will have climate policy,91裸聊视频� she said, regardless of what the Conservatives do or don91裸聊视频檛 do.
91裸聊视频淏ut they91裸聊视频檙e obviously going to do it in a way that works for their business and keeps them competitive and profitable.91裸聊视频�
Mia Rabson, The Canadian Press
