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Trudeau gives Quebec special treatment on carbon tax

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From the Canadian Taxpayers Federation

Author: Franco Terrazzano

The Canadian Taxpayers Federation is highlighting a fundamental unfairness about the federal carbon tax: Prime Minister Justin Trudeau is requiring taxpayers in other provinces to pay a higher carbon tax than in Quebec.

“Trudeau is giving Quebec a special deal on carbon taxes and giving other Canadians higher gas prices and heating bills,” said Franco Terrazzano, CTF Federal Director. “The solution is simple: Trudeau should scrap his carbon tax and lower gas prices and home heating bills across Canada.”

The federal government states all provinces are required to impose the carbon tax equally. “The federal government is committed to ensuring that carbon pricing is in place across Canada at a similar level of stringency,” states the government’s backgrounder.

Taxpayers in British ColumbiaAlbertaSaskatchewanManitobaOntarioNew BrunswickNova ScotiaPrince Edward IslandNewfoundland and Labrador, the Northwest TerritoriesYukon and Nunavut are all required to pay a carbon tax of $80 per tonne of carbon dioxide equivalent.

However, Quebec’s cap-and-trade carbon tax is currently $57 per tonne.

By 2030, the federal carbon tax will cost $170 per tonne, while Quebec’s will cost an estimated $97 per tonne, as reported by La Presse. That means in 2030, Quebec’s carbon tax will cost about 14 cents per litre of gasoline less than in the rest of Canada.

“Trudeau’s special deal for Quebec shows the carbon tax was always about politics,” said Terrazzano. “Trudeau should make life more affordable for all Canadians and scrap his carbon tax.”

Current cost of carbon tax, Quebec vs. rest of Canada*

  Quebec ($57/tonne) Rest of Canada ($80/tonne)
Gasoline (per litre)

$0.13

$0.17

Diesel (per litre)

$0.17

$0.21

Natural gas (per cubic metre)

$0.10

$0.15

* CTF estimates for Quebec based on cap-and-trade auction price. The rest of Canada is based on the cost of the carbon tax, according to the government of Canada.

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Economy

Carbon tax costs Canadian economy billions

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From the Canadian Taxpayers Federation

Author: Franco Terrazzano 

This tax costs Canadians big time at the gas pump, on home heating bills, on the farm and at the dinner table.

The Canadian Taxpayers Federation is calling on the federal government to scrap the carbon tax in light of newly released government data showing the tax will cost the Canadian economy about $25 billion in 2030.

“Once again, we see the government’s own data showing what hardworking Canadians already know: the carbon tax costs Canada big time,” said Franco Terrazzano, CTF Federal Director. “The carbon tax makes the necessities of life more expensive and it will cost our economy billions of dollars.

“Prime Minister Justin Trudeau must scrap his carbon tax now.”

The government of Canada released modelling showing the cost of the carbon tax on the Canadian economy Thursday.

“The country’s GDP is expected to be about $25 billion lower in 2030 due to carbon pricing than it would be otherwise,”  reports the Globe and Mail.

Canada contributes about 1.5 per cent of global emissions.

Government data shows emissions are going up in Canada. In 2022, the latest year of data, emissions in Canada were 708 megatonnes of CO2, an increase of 9.3 megatonnes from 2021.

The federal carbon tax currently costs 17 cents per litre of gasoline, 21 cents per litre of diesel and 15 cents per cubic metre of natural gas.

The carbon tax adds about $13 to the cost of filling up a minivan, about $20 to the cost of filling up a pickup truck and about $200 to the cost of filling up a big rig truck with diesel.

Farmers are charged the carbon tax for heating their barns and drying grains with natural gas and propane. The carbon tax will cost Canadian farmers $1 billion by 2030, according to the Parliamentary Budget Officer.

“No matter how many times this government tries to put lipstick on the carbon tax pig, the reality is clear,” said Kris Sims, CTF Alberta Director. “This tax costs Canadians big time at the gas pump, on home heating bills, on the farm and at the dinner table. Trudeau should make life more affordable and improve the Canadian economy by scrapping his carbon tax.”

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Economy

Ottawa should abandon unfeasible and damaging ‘net-zero’ plan

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From the Fraser Institute

By Kenneth P. Green

A high-power AI chip uses as much electricity per year as three electric vehicles (and by the way, one EV per household would double residential electricity demand)

According to the Trudeau government’s plan, Canada will reduce greenhouse gas emissions to “net-zero” by 2050, largely by “phasing out unabated fossil fuels.” But given current technologies, virtually all fossil fuels are “unabated”—that is, they generate greenhouse gases when burned. So basically, the plan is to phase-out fossil fuel use, use wind and solar power to power our lives, and transition to electric vehicles.

But this plan is simply not feasible.

In a recent study, Vaclav Smil, professor emeritus at the University of Manitoba, spotlights some uncomfortable realities. Since the Kyoto Protocol was enacted in 1997, essentially setting the world on the path to net-zero, global fossil fuel consumption has surged by 55 per cent. And the share of fossil fuels in global energy consumption has barely decreased from 86 per cent to 82 per cent. In other words, writes Smil, “by 2023, after a quarter century of targeted energy transition, there has been no absolute global decarbonization of energy supply. Just the opposite. In that quarter century, the world has substantially increased its dependence on fossil carbon.” It’s worth noting that Smil is not some “climate denier”—he’s a strong believer in manmade climate change, and sees it as a serious danger to humanity.

In another recent article, Mark Mills, renowned energy policy analyst, boldly declares, “The Energy Transition Won’t Happen,” in part because developments in computing technologies such as cloud computing and artificial intelligence (AI) will require more energy than ever before, “shattering any illusion that we will restrict supplies.” Mills provides some eye-popping examples of how cloud and AI will suck up vast amounts of energy. A high-power AI chip uses as much electricity per year as three electric vehicles (and by the way, one EV per household would double residential electricity demand).

And chip-maker Nvidia, Mills observes, produced some five million such chips in the last three years, and market demand for them is soaring. The appetite for AI chips is “explosive and essentially unlimited.” The data centres that power cloud computing are also mind-boggling in their energy use, each with an energy appetite often greater than skyscrapers the size of the Empire State Building. The largest data centres consume more energy than a steel mill. And the energy used to enable one hour of video (courtesy of all that cloud computing) is more than the share of fuel consumed by a single person on a 10-mile bus ride.

And yet, on the march towards the unreachable goal of net-zero, government policies have forced out coal-power generation in favour of more costly natural-gas power generation, significantly increasing Canadian’s energy costs. Shifting to lower-GHG energy generation has raised the cost of power, particularly in provinces dependent on fossil-fuel power, while the federal carbon tax drives up costs of energy production. And all at a time when significant numbers of Canadians are mired in energy poverty (when households must devote a significant share of their after-tax income to cover the cost of energy used for transportation, home heating and cooking).

No government should base public policy on wishful thinking or make arbitrary commitments to impossible outcomes. This type of policymaking leads to failure. The Trudeau government should abandon the net-zero by 2050 plan and the never-gonna-happen fossil fuel phase-out, and cease its economically damaging energy, tax and industrial policies it has deployed to further that agenda.

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