Guilbeault and Officials Provide Conflicting Numbers on Carbon Tax Emissions Impact

Minister of Environment and Climate Change Steven Guilbeault, speaks during a press conference at the National Press Theatre in Ottawa, May 7, 2024. THE CANADIAN PRESS/Sean Kilpatrick

Environment Minister Steven Guilbeault told MPs on a parliamentary committee that carbon pricing is estimated to have reduced emissions by nearly 3 percent, while one of his officials says the carbon tax was responsible for around 1 percent in reductions.

Mr. Guilbeault was asked to provide data on reductions attributed to the carbon tax during his testimony at the House of Commons environment committee on May 21. He initially said the reduction amounted to 19 megatons in 2022.

According to his department, Canada’s total greenhouse gas emissions was 708 megatons in 2022, which suggests the carbon tax would have reduced emissions by 2.68 percent.

Conservative MP Dan Mazier said he was puzzled by the figures provided, given Mr. Guilbeault had formally told him back in January that Ottawa doesn’t measure the impact of federal carbon pricing.

Mr. Mazier asked how the figures had been obtained and whether the numbers “are combined with a bunch of other stuff.”

“The numbers that I gave you are specifically related to the carbon pricing,” said Mr. Guilbeault, noting the numbers were sourced from his department’s inventory report.

The carbon pricing is broader than the carbon tax, or fuel charge, as it also includes the industrial pricing system.

John Moffet, assistant deputy minister at Environment Canada, sought to clarify the matter with the committee. He said that 3 percent is the reduction in total emissions, while carbon pricing contributed to a third of that total.

“One third of those reductions are attributable to carbon pricing, so it’s not that carbon pricing has only achieved 3 percent of reductions. Carbon pricing has contributed to a third of total reductions,” he said.

Tory MP Michael Kram asked Mr. Moffet whether this means the carbon tax is estimated to contribute to only 1 percent of total emissions reduction. “To date,” answered Mr. Moffet.

Mr. Moffet, however, mentioned “carbon pricing,” whereas Mr. Kram was speaking about the “carbon tax.”

The Epoch Times reached out to Environment Canada for clarification on the matter.

Spokesperson Samantha Bayard confirmed the modelling figure of 19 megatons in emissions reduction attributed to carbon pricing implemented in federal, provincial and territorial climate plans. Mr. Moffet’s claim, however, was not addressed.

“Overall, the data shows that the carbon price continues to work in achieving incremental additional carbon reductions,” said Ms. Bayard.

‘Revenue Neutral’

Following the 1 percent figure provided by Mr. Moffet, Mr. Kram questioned whether other measures would give taxpayers more value for money when it comes to combatting emissions.

“If our total emissions have only been reduced by 1 percent as a result of the carbon tax, I can’t help but think: aren’t there other technological innovations out there that could be achieved at much less cost to consumers to reduce total emissions by that 1 percent?” asked Mr. Kram.

Lawrence Hanson, associate deputy minister at Environment Canada, said the question assumes that the carbon tax is a form of spending that could be redirected elsewhere.

“The carbon price is something that is charged, and then largely revenue neutral, where the funding is actually returned in various different ways setting a price signal,” he said.

Conservatives have been pushing the Liberal government to drop the carbon tax or introduce temporary relief measures amid an affordability crunch.

The Liberals assert that eight out of ten households get more back from the carbon tax through rebates, whereas the Tories say that overall eight out of ten households are worse off because of it.

Parliamentary Budget Officer Yves Giroux assesses that if the broader economic impacts of the carbon tax are not accounted for, then the Liberals are correct. The Tories are right, however, when the broader impacts are calculated, he previously told The Epoch Times.

The federal fuel charge in most provinces has increased from $65 per tonne of carbon dioxide equivalent to $80 per tonne on April 1. This currently adds over 17 cents per litre of gasoline.

The Liberal government seeks to raise it to $170 per tonne by 2030, which would add over 37 cents to a litre of gasoline.

Mr. Mazier asked Mr. Guilbeault whether his government has discussed raising the fuel charge beyond $170.

“There’s been no such determination made at this point,” said the minister. When pressed, Mr. Guilbeault said there have been no conversations on the matter.

Editor’s note: This article has been updated to include the response from Environment Canada.