Feds warned ‘net-zero’ policies make life more expensive

Alex Dhaliwal
  |   July 16, 2024   |   Be the first to comment

A federal advisory report claims cabinet must acknowledge they worsened the cost of living crisis through its climate programs. Nearly a fifth of Canadian households face “energy poverty.”

“Net zero policy developments must consider the cost of living challenges facing many Canadians,” said a report by the cabinet-appointed Net Zero Advisory Body. The panel did not elaborate, reported Blacklock’s Reporter.

“Truly transformative net zero climate policy needs to do more than just reduce emissions,” said the report, What We Heard: 2023 Engagement Report. “It must … address the housing crisis, the biodiversity crisis, food insecurity, energy affordability, citizen health and well-being, lack of public transportation throughout the country, regional differences, urban and rural needs and circular economy objectives.”

The 10-member body is comprised of environmental advocates and academics appointed by Environment Minister Steven Guilbeault. The 2023 Annual Report will provide a comprehensive overview of the issues examined “later in 2024.”

The warning follows February 20 research by the Journal Of Public Health that high fuel costs hurt millions of Canadians. “Depending on the measure six to 19 percent of Canadians households face energy poverty,” said the study, Energy Poverty: An Overlooked Determinant Of Health And Climate Resilience In Canada.

Households faced with “energy poverty” spend more than 10% of yearly income on heating and cooling their homes or those who paid double the national median for fuel and electricity as a share of their family budget. 

“Energy poverty is not yet on the national policy agenda,” said Health And Climate Resilience.

“Despite Canada being an important energy producer not all Canadians can access or afford adequate levels of energy services at home to meet their needs, maintain healthy indoor temperatures and live a decent life, a situation known as energy poverty,” it reads.

Authors did not single out the carbon tax as a cause of higher costs but said climate programs had an impact.

“The carbon tax costs Canadians big time for gas, home heating bills and everything else,” said the Canadian Taxpayers Federation (CTF). “And the carbon tax is a huge drag on the Canadian economy that we just can’t afford.”

The carbon tax is expected to cost the Canadians at least $12 billion this year, according to the taxpayers group. 

Ontario will be on the hook for $4.1 billion this year, followed by Quebec ($3.2 billion), Alberta ($1.8 billion), British Columbia ($1.7 billion), and Saskatchewan ($476 million). Only the Northwest Territories is expected to benefit from the tax to the tune of $15 million.

The Department of Environment in a 2022 report acknowledged climate programs made energy unaffordable for some Canadians. “Some measures may have a disproportionate impact on lower income Canadians if they lead to increased energy or vehicle costs,” said the report, Evaluation Of The Core Climate Change Mitigation Program.

At the end of the decade, the carbon tax will cost the Canadian economy $30 billion, or an estimated $678 per person based on Statistics Canada population projections. Other government data says Canada’s GDP will fall $25 billion in 2030 due to the carbon tax.

Environment and Climate Change Canada has been faulted time again for not explaining the impact of carbon taxes and other measures. 

Associate Deputy Environment Minister, Lawrence Hanson, said the carbon tax only reduced emissions by 1%. Minister Guilbeault pledged to do better. 

But Terrazzano says Canadians have had enough. “Trudeau should stop wasting money, stop punishing Canadians and scrap the carbon tax,” he said. 

A 2023 report, Emission Reductions Through Greenhouse Gas Regulations, depicted federal climate programs as ‘guesswork’.

“The federal government does not know whether it is using the right tools to reduce emissions,” wrote Environment Commissioner Jerry DeMarco. “Solutions exist,” he said, but they are being implemented “much too slowly.”

The National Inventory Report released on May 2 confirmed emissions in 2022, the most recent available data, increased 9.3 million tonnes year over year to 708 million tonnes. Emissions last declined in 2020 due to pandemic lockdowns.

Statistics Canada and Simon Fraser University's Canadian Energy and Emissions Data Centre data show Canada produced 738 megatonnes of carbon emissions in 2020.

National Inventory figures showed only Alberta and Saskatchewan had emission declines year over year. Both provinces have opposed the carbon tax as costly and ineffective.

Commissioner DeMarco told the Senate energy committee last year that Canada’s emissions are “up 14 percent since 1990.”

“Canada is the only G7 country that has not achieved any emission reduction since 1990,” he said. “That needs to change now.”

The carbon tax is currently worth 12¢ per litre of propane, 15¢ per cubic metre of natural gas, 18¢ per litre of gasoline, 20¢ per litre of aviation fuel and 25¢ per litre of heating oil. A 23% increase is due next April 1.

Alex Dhaliwal

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Alex Dhaliwal is a Political Science graduate from the University of Calgary. He has actively written on relevant Canadian issues with several prominent interviews under his belt.

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