Consumer carbon tax disappeared. How will this affect Canada emissions?

The federal government ended its carbon pricing for consumers, that is It is expected to lead to savings in the gas pump. But what did the carbon tax and deduct the climate actually do? Now that it has ended, what is the effect of this on emissions? Here is a closer look.

How was the consumer carbon tax to reduce and deduct emissions?

Consumer carbon pricing of the federal government, which was launched by the liberal government of Justin Trudeau in 2019, was applied in provinces that had no own prices.

He had two parts:

• An additional tax or tax is added to the price of the fuel from which the carbon is emitting, which was increasing every year from $ 20 per ton of carbon in 2019 to $ 170 per ton in 2030. As of March 31, when it ended, He added 17.6 cents for gasoline and 15.25 cents per cubic meter to natural gas.

• The carbon discount in Canada, based on the size of the family, was paid four times a year to compensate for the cost, as it returned to 90 percent of the tax revenues. April batch will be the last families you receive.

This strengthened the price of the fuel stickers from which the carbon emitted, which was aimed at reducing its use. “When something costs, more people use less than him … we find ways to be more efficient or adopt alternatives,” said Stewart Eli, a professor of law and economics at the University of Ottawa.

These alternatives can include things such as getting an electric car, taking a transportation or biking more, isolating your home or replacing the oven with a heat pump.

Climate discount allowed the government to increase the price of fuel without affecting people’s costs in general. But he also added to the incentive to reduce emissions, because people received payment even if they did not buy fossil fuels.

“The more it decreases, the more you advance in the pocket book,” Elji said. “Those who actually reduced more than in the end.”

But was he already working?

Yes, according to the 2024 report from the Canadian Climate Institute. And I found that carbon pricing, consumer and industrial will play a “leading role” in cutting emissions by 2030.

However, the industrial carbon price It was expected to have three times the effect of the carbon price consumer. It was expected that the price of consumer carbon, or fuel fees, was expected to reduce eight to 14 percent emissions, compared to 23 to 48 percent of the industrial carbon price.

“In some respects, the loss of the consumer carbon price only confirms the importance of the industrial carbon price-it is extremely important to fulfill competitiveness as well as emissions,” said Del Bujin, the co-author of the Canadian Climate Institute report.

The liberals during the era of the new leader, Mark Carne, promised to maintain the price of the industrial carbon if they were elected in the upcoming federal elections. However, the conservatives are under the leadership of Pierre Poelifer He promised to eliminate artificial carbon pricing if elected.

In general, Canada emissions Decrease despite the growing economy. In 2023, Canada emitted 694 MEM, a decrease of 0.9 percent compared to 2022 and a decrease of 8.5 percent compared to 2005, The federal government mentioned.

“We finally see the success in reducing our emissions and building a clean economy after decades of failure,” Elji said. “This is because our climate policies are now working.”

Will the loss of Consumer carbon tax to increase Canada emissions?

Not necessarily, according to both Elgie and Beugin.

This is partially dependent on whether the government maintains its current policies. And include Goals of selling electric cars and Clean fuel standards This may push consumers towards electric cars even without carbon tax.

ELGIE also says it also depends on whether the carbon price is replaced by other climate policies that generate equivalent discounts. These benefits can include cleaner technology such as EVS and heat pumps, or regulations.

Carney said that if he is elected, he will replace the carbon tax b Canadian rewards for purchasing products such as energy -saving devices, electric cars, or the best house isolation.

Elgie says this can help reduce emissions, but studies, Including some of his own researchSuch subsidies can be assigned more than carbon pricing. Carbon pricing is cheaper and most efficient to reduce emissions, because they are the most flexible and allow for every person or work to choose a way to reduce emissions that work better for them.

Boycen said that clean technology discounts and benefits have witnessed a lot of success in the United States, but they are paying their price by taxpayers, and they risk using people to do things they may have done anyway, even without support.

He says the area most in need of policies to reduce emissions is the buildings. “It is one of the sectors that still go in a wrong way in terms of emissions,” he said, indicating that more can be done to improve energy efficiency and avoid burning fossil fuels of heat, such as the most strict construction symbols.

While low technology prices such as heat pumps may help, Bojin said that the government still has a necessary role to play in reducing emissions.

“We will not provide our goals for emissions as a country, in the absence of policy incentives.”