Canada鈥檚 environment and climate change minister says that on average, households may eventually pay more for the carbon price than they get back in rebate payments, but the Liberal government is helping Canadians lower their energy costs in other ways.
The carbon price increased this weekend, from $50 to $65 per tonne. According to the Canadian Taxpayers鈥� Federation, the change will translate to a higher cost for consumers at the gas pumps, from the current 11.05 cents per litre, to 14.31 cents per litre, among other impacts.
The hike comes just days after a this week stating that by 2030, when the price of carbon is expected to reach $170 per tonne, most households will see a net loss, despite the rebate payments offered by the federal government to offset the surcharge.
鈥淲hen both fiscal and economic impacts of the federal fuel charge are considered, we estimate that most households will see a net loss,鈥� PBO Yves Giroux said in a statement following release of the report. 鈥淏ased on our analysis, most households will pay more in fuel charges and GST鈥攁s well as receiving slightly lower incomes鈥攖han they will receive in Climate Action Incentive payments.鈥�
Environment Minister Steven Guilbeault told CTV鈥檚 Question Period host Vassy Kapelos in an interview airing Sunday that while "on average, households will pay more鈥� because of the carbon price increase, even after the rebates, he says the system is designed to be proportional, meaning wealthier Canadians will still foot larger bills.
鈥淚f you do the average, yeah, it's true, it's going to cost more money to people, but the people who are paying are the richest among us, which is exactly how the system was designed,鈥� he said.
鈥淪o the rich pay more for their carbon consumption and their carbon pollution, and we're supporting, through the transition, middle class Canadians and low income Canadians, and that's exactly what we're doing,鈥� he also said.
Guilbeault said that while the rebates may not cover the full cost for Canadians, the federal government is doing a number of other things to mitigate the cost of climate change and help people transition to a lower carbon future. He cited incentive programs to purchase electric vehicles, and home energy retrofits to reduce home heating costs, as examples.
鈥淭his is another way we're helping Canadians reduce their environmental impact, but also their overall energy costs,鈥� he said, adding the PBO鈥檚 report does not take into account the cost of the impacts of climate change.
But when pressed on the system itself and a commitment that most households wouldn鈥檛 be out of pocket for the carbon price, Guilbeault again pointed to it being proportional, and lower income Canadians seeing greater rebates.
鈥淲e have said that the rebates would help the people most in need in Canada and that's exactly what the system is doing,鈥� he said.
Guilbeault also said in a statement this week the PBO report does 鈥渘ot account for economic opportunities that come with driving clean tech innovation,鈥� and referenced the recently tabled federal budget and the earmarked funds for clean energy included in it.
鈥淭hat鈥檚 like a business calculating their revenues, by looking only at one side of their ledger book,鈥� he said of the PBO report.
The federal Conservatives have repeatedly issued calls for the Liberals to axe the carbon price, with party leader Pierre Poilievre saying in the House of Commons this week: 鈥淚t鈥檚 April Fool鈥檚 Day, and the joke will be on Canadians. Why won鈥檛 they cancel this tax?鈥�
Meanwhile in Ontario, the carbon price became a between Premier Doug Ford and Guilbeault this week. Ford has been critical of the program, and on Wednesday, Guilbeault said he found the comment 鈥渋ncredibly rich coming from a premier who has no plan to fight climate change.鈥�
The comment prompted the premier to call Guilbeault a 鈥渞eal piece of work.鈥�
鈥淚 didn't say that Ontario wasn't doing anything,鈥� Guilbeault told CTV鈥檚 Question Period. 鈥淚 said that the Ontario government has no climate plan, which is true, and they've admitted as much themselves.鈥�
He added he considers a 鈥減lan鈥� one with a series of measures with targets and progress reporting.
Guilbeault said despite the back-and-forth comments this week, he works closely with the Ontario government and its ministers to "try and find a path forward" on several environmental projects and policies.
With files from 麻豆影视鈥� Stephanie Ha
