New “clean fuel” regulations that aim to reduce carbon emissions and are set to come into effect next summer will cost Canadians more than $1,200 a year on average, according to research commissioned by the advocacy group Canadians for Affordable Energy.
The $1,277 estimate takes into account “increased energy costs, lower wages, lower capital earnings and increased indirect costs throughout the rest of the economy,” says the paper.
The clean fuel regulations “will put downward pressure on government revenues leading to an increase in the consolidated government deficit in every year of the policy’s implementation, reaching $5 billion nationally in 2030 and $10 billion in 2040,” the analysis states.
‘Second Carbon Tax’
Dan McTeague, president of Canadians for Affordable Energy, says that the clean fuel standard amounts to a “second carbon tax” that will add to the rising cost of living.“This new carbon tax is being released at a time of soaring household costs. Grocery prices have skyrocketed. Families are struggling to afford the basic necessities for their home. Now the Trudeau government is going to make it even more expensive,” he said in an Oct. 18 statement.
Environment Minister Steven Guilbeault in the Commons on Oct. 21 did not dispute the Canadians for Affordable Energy figures but said the expense was justifiable, according to Blacklock’s.
“Climate change is costing Canadians billions,” said Guilbeault.
The clean fuel requirements are set to start taking effect on July 1, 2023.
