Environment Minister Steven Guilbeault says that the cost of Canada’s carbon emissions could be nearly five times higher than previously thought, and that the federal government will use a “new tool” to fight climate change called the “social cost of carbon.”
Guilbeault said the federal government used updated scientific and economic models to evaluate how much climate change costs Canadians.
While a previous analysis estimated that by 2020, the cost of carbon would be about $54 a tonne, an updated model suggests the figure is actually closer to $247. That number is now at $261 in 2023, and the model predicts that by 2030, the figure will have risen to $294.
“Pause for a moment to understand what this signifies,” Guilbeault said.
“Every tonne of carbon we reduce this year saves society as a whole $261, and we are talking in terms of cutting megatonnes: millions of tonnes.”
The minister criticized the PBO report for not specifically accounting for the economic and environmental costs of climate change itself.
Not Know if ‘Using the Right Tools’
Guilbeault’s comments came the day before a report titled “Emission Reductions Through Greenhouse Gas Regulations” was released by the Commissioner of the Environment and Sustainable Development.“This was because the department’s approach to measuring emissions did not attribute emission results to specific regulations,” says the April 20 news release.
“Regulations are an important element of achieving Canada’s emission reduction target,” said DeMarco in the release. “However, without comprehensive impact information, the federal government does not know whether it is using the right tools to sufficiently reduce emissions to meet its target.”
The report also found the department “took too long” to develop the Clean Fuel Regulations, taking over five years rather than the originally planned 2.5 years, which jeopardized the pace of Canada’s emission reductions.
Additionally, the report said the department “did not know whether regulations to limit methane emissions were achieving their objective.”