Freeland Highlights Climate Transition ‘Opportunity’ in Response to Carbon Tax Question

Minister of Finance Chrystia Freeland rises during question period in the House of Commons on Parliament Hill in Ottawa on June 19, 2023. Sean Kilpatrick/The Canadian Press

Finance Minister Chrystia Freeland responded to a call by the premier of Newfoundland and Labrador to get rid of carbon taxes and Clean Fuel Regulations by calling the global “climate transition” an “opportunity” that Canada must seize.

“I do also think we all need to recognize ... that the climate transition is an opportunity for our country. That it is something that—if we embrace, and we are—is a tremendous source of jobs and growth for today and for the future,” Ms. Freeland said during a press conference in Placentia, Newfoundland and Labrador.

The finance minister’s comments came in response to a reporter’s question on Premier Andrew Furey’s Aug. 15 letter to Prime Minister Justin Trudeau, where he said the federal carbon tax is having a “detrimental and disproportionate impact” on those in his province.

The premier said while he shared the federal government’s goal of addressing climate change and achieving a net zero economy, the impacts of the policies on inflation and the welfare of Canadians need to be considered. He also penned a letter to the prime minister back in September 2022, where he said the carbon tax would place “undue economic burdens on the people of this province,” particularly the elderly, rural, and low-income residents who are more likely to burn oil to heat their homes.

Ms. Freeland said she took the concerns of Premier Furey’s constituents “very seriously” and acknowledged that the cost of living was a “real challenge” in the province. The deputy prime minister highlighted the carbon tax rebates, also known as Climate Action Incentive Payments, being sent out to Canadians, which could total up to $1,300 for a family of four.

“I don’t want to overstate it. It won’t solve everything, but it will make a real difference,” she said.

The Parliamentary Budget Officer has found that carbon taxes will cost the average household between $402 and $847 in 2023, even after accounting for rebates. The rebates came into effect on July 1 for Newfoundland and Labrador, Nova Scotia, and Prince Edward Island, giving residents of the provinces three quarterly payments in the first year and four payments in the years following.

Ms. Freeland also highlighted that Canada had been visited by “so many natural challenges,” such as wildfires in British Columbia, the Northwest Territories, and Yukon, and Hurricane Fiona in the Atlantic provinces. “Climate action and being a country with a strong climate agenda is about building our economy,” she said.