(Ottawa) The carbon pricing system remains solid and reliable despite the exemption for heating oil deliveries, claims Environment Minister Steven Guilbeault in an interview with La Presse. He reiterated that the government would not accept any further violation as long as he was in office.
Posted at 5:07 p.m.
“I’ll say it and I’ll say it again: This is not an ideal situation,” he admits. You cannot give the impression that the carbon pricing system is negotiable because it is a very, very effective tool. »
An instrument that has made it possible to reduce greenhouse gas emissions by a third, he says. The goal of this tax is to encourage people and businesses to switch to cleaner energy sources to avoid paying this tax. It does not apply to Quebec, British Columbia and the Northwest Territories, which have their own carbon pricing systems.
But the cost of living crisis overcame the application of the federal tax to oil heaters, a fuel whose price has skyrocketed over the past year. Prime Minister Justin Trudeau announced his temporary suspension of heating oil deliveries until the end of 2026-2027 two weeks ago. A policy that benefits the residents of the four Atlantic provinces, where almost a third of the population uses this form of heating in winter.
“This pause is a pause at 1% of emissions in Canada, so Canada’s carbon pricing system is still very sound and still applies to the vast majority of industry and our economy,” argues Mr. Guilbeault.
The government has also increased the subsidy for replacing this fuel with a heat pump by 50% and is offering $250 to low-income people to encourage them to purchase a heat pump. The aim is to accelerate the use of a less polluting form of heating in order to “accelerate the reduction of greenhouse gas emissions”.
“We will move even faster to eliminate heating oil everywhere in the country,” he emphasizes.
The Commissioner for Environment and Sustainable Development announced earlier this week that he would analyze the impact of this carbon tax breach on reducing greenhouse gas emissions in his next report. He also wants to know whether this about-face has damaged private sector confidence in carbon pricing.
Nothing has changed for large companies, remembers Minister Guilbeault. “I think the system is still there, companies can still trust it. » As an example, he cites the Canada Growth Fund and its $15 billion, which invests in private sector projects aimed at reducing emissions. The first agreement was signed with Alberta-based Eavor Technologies, which developed closed-loop geothermal technology.
“So not only is the price still there, we are also starting to sign agreements to guarantee it after 2030,” he adds.
Will he resign if the government cuts carbon pricing again? “What I said is what the Prime Minister said, that there would be no further violations so I wouldn’t have to do what you say,” he replies.
However, the government may be forced to reluctantly accept a new agreement. Conservative Bill C-234, currently in its third reading in the Senate, proposes to include natural gas and propane in the exemption that already applies to fuels used to dry grain in agriculture.
Minister Guilbeault voted against it in the last third reading vote in the House of Commons.