Federal carbon pricing rolls out across Atlantic Canada July 1

The clock is ticking for Maritimers as the federal government prepares to roll out its carbon pricing across Atlantic Canada on July 1.

“The logic behind this kind of policy is by making things that contribute to carbon emissions more expensive, basically making fossil fuel consumption more expensive, it creates an incentive for people to do less of that,” explained Anders Hayden, a political science associate professor at Dalhousie University in Halifax.

The tax will cause a notable impact and will be seen in everyday scenarios for most.

“This is what’s so damaging about carbon tax is, is that it makes the necessities of life so much more expensive,” said Canadian Taxpayers Federation Federal Director, Franco Terrazzano.

“It makes it more expensive for you to fuel your car on the way to work. It makes it more expensive for you to keep your home warm during the cool winter months and it drives up the cost of food, which of course are all things that we rely on.”

Breaking it down even further, Terrazzano says it will be felt by drivers immediately.

“The carbon tax will be jumping up 11 cents per litre of gasoline to 14 cents per litre of gasoline July 1 [in P.E.I. and Newfoundland],” he said.

“In Nova Scotia it’s going to be a particularly big bill at the pumps because right now in Nova Scotia, currently, the carbon tax is about 2 cents a litre of gasoline and then July 1 the carbon tax will jump to 14 cents per litre of gasoline.”

However, with the new tax comes a new rebate program put in place by the federal government to help offset some costs for Canadians.

A man fills up his truck with gas in Toronto, on Monday, April 1, 2019. Canada's greenhouse gas emissions soared 15 million tonnes in 2018 the latest national inventory report shows. (THE CANADIAN PRESS/Christopher Katsarov)

“Depending on the level of fossil fuels on average that is consumed by individuals in your province, you will receive more or less money from the federal government,” said Environment and Climate Change of Canada Minister, Steven Guilbeault.

Looking at a family of four, made up of two parents and two children, a New Brunswick family will get $184 four times a year, Nova Scotia families will see $248 four times a year and families on P.E.I. will receive $240 four times a year.

“We return the money at the beginning of the quarter so you get the money before you have to do the expenses,” said Guilbeault.

Hayden says the rebate program is an important piece of the puzzle and will help cushion the financial blow for lower to middle-income people.

“Many people can end up actually ahead of the game finically because, you know, typically it’s higher income people that are spending the most on carbon emitting energy so they’re contributing the most into the funds and then everybody basically gets an equal share back,” he said, comparing it to GST.

However, even with rebates in effect, the policy has received pushback and criticism.

“The carbon tax is not an environmental plan, it’s a tax plan.” said Terrazzano.

“The [parliamentary budget officer’s] numbers are very clear, the average family in Atlantic Canada will pay hundreds of dollars more than what they get back in rebates,” he added.

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In response to this, Guilbeault says the parliamentary budget officer only “looked at part of the equation” and the rebate is designed to give back to Canadians as indicated.

“It’s a program that has now been in place in Canada for four years. It is recognized world wide as a model,” he said.

While Maritimers can expect to see a difference starting July 1, Hayden pointed out this isn’t the only increase that’s going to be seen in Atlantic Canada.

“The one thing that is interesting going forward though, and that people should be aware of, it is going to go up, substantially over time,” he said.

“So right now, it’s coming in at $65 a tonne. By 2030, it’s going to be $170 a tonne of CO2, so the tax is going to get bigger over time. Also, the potential of rebate cheques will get bigger over time, but it’s also going to create stronger reasons for people to move towards environmentally sound options.”

Even ahead of the roll out in Atlantic Canada, Guilbeault says he’s confident in the program and the different it will make long term.

“Between 2019 and 2021 we’ve been able to reduce climate pollution in Canada by more than 50 million tonnes. What does 50 million tonnes mean? It’s the equivalent of removing, from our roads, 11 million vehicles. Imagine that for a second,” said Guilbeault.

“It is a very powerful tool to help us fight climate change and I’m very confident that going forward we will continue using it.”