First Nations chiefs in Ontario are asking a court to review the federal government’s “discriminatory” and “anti-reconciliatory” carbon price system, claiming Ottawa has “refused” to negotiate with them.
The Chiefs of Ontario, which represents more than 130 First Nations across the province, has filed an application for judicial review in Federal Court, saying the carbon pricing system has a “disproportionate impact on First Nations and their members.”
“First Nations see the reality of climate change every single day and expect Canada to address it. However, we do not accept a regime that creates new burdens on First Nations which already face deep infrastructure and economic challenges,” said Grand Chief Abram Benedict, environment portfolio lead at Chiefs of Ontario, in a Nov. 30 press release.
“Canada should be working with us to confront the climate crisis and close gaps on reserve instead of creating policy in an ivory tower that exacerbates the affordability issues our citizens face.”
The Chiefs of Ontario say the federal government has failed to meet with them despite repeated attempts to “enter into good-faith conversations” and denied their request for a carbon tax exemption only to grant one to Atlantic Canada on Oct. 26.
The judicial review application asks the court to order Ottawa to meet with the Chiefs of Ontario to create a new carbon levy with a fair application for all First Nations in the provinces. Failing that, the chiefs are asking the government to exempt their communities from the tax.
Rebate Not Available to First Nations
Under the federal Climate Action Incentive Payment program, 90 percent of the fuel charge is returned to individuals when they file income taxes. First Nations people who live and work on reserve are exempt from taxes under the Indian Act, and as a result, are not able to claim the carbon levy rebate.
“The charge is not supposed to generate revenue for Canada, but when it’s applied to us it does,” Chief Benedict said. “We don’t get the rebates and returns that other communities get and it’s unfair.”
Although the remaining 10 percent of the carbon tax rebate is distributed to federal programs that support small business and First Nations, Indigenous communities receive only 0.7 percent of those funds. That amount does little to offset the high fuel costs northern and remote First Nations must pay, the court filing says, adding that most of these communities have few if any low-carbon alternatives available to them.
Carbon pricing, which slaps a tax on carbon-emitting fuels, was introduced in 2019 in a bid by the Liberals to reduce CO2 emissions. Prime Minister Justin Trudeau has described the carbon tax as a necessity to convince Canadians to switch to more eco-friendly fuels so the country can achieve net-zero carbon emissions by 2050.
Mr. Trudeau announced a pause on the carbon tax for home heating oil in October for the 10 provinces and territories where the federal fuel charge is collected. The move largely benefits Atlantic Canada, where 30 percent of homeowners still use furnace oil to heat their homes.
The prime minister has declined to expand the exemption to include other types of home heating.
“There will absolutely not be any other carve-outs or suspensions of the price on pollution,” Mr. Trudeau told reporters on Oct. 31. “This is designed to phase out heating oil.”
Conservative Leader Pierre Poilievre has been calling on the Liberals to extend the carbon tax exemption on all types of home heating for “all Canadians” since the end of October.
His party put forward a motion in the House of Commons on Nov. 6 requesting the extension but was defeated despite receiving support from the NDP. The Bloc Québécois and Green Party voted along with the Liberals to defeat the motion 186–135.
The Canadian Press contributed to this report.
