Canadian producers have a vested interest in sustainable growing practices and environmental stewardship, and growers often invest in programs and new technology that help to mitigate these risks. For example, greenhouse growers have developed innovative ways to recycle the carbon they produce as food-grade CO2 for their plants. However, such sustainable innovation has not been recognized in a uniform way across Canada, resulting in disparate carbon pricing policies among provinces.
The added costs of these policies, together with the capital-intensive infrastructure needed for the construction of greenhouse facilities, make the sector vulnerable to carbon leakage, whereby companies, in an attempt to remain competitive, expand their operations in jurisdictions that aren't subject to carbon pricing, such as the U.S. and Mexico. Due to the global nature of the produce market, new costs of production are not easily passed on to consumers. This reality impacts the price of domestically grown food in the marketplace and, ultimately, Canada's competitiveness.
While fruit and vegetable growers are committed to environmentally friendly production practices, the are also dependent on favourable energy costs and a stable, supportive tax regime to remain competitive and stay in business.
CHC urges the federal government to include natural gas and propane in its list of proposed agricultural fuels exempt from its national carbon pricing policy, as these fuels produce exhaust that is partly recycled by greenhouses as food-grade CO2, enhancing plant growth. This exemption would minimize the regional disparity seen in the current pricing models and support Canada's upcoming food policy by increasing access to affordable food; improving health and food safety; conserving our soil, water, and air; and growing more high-quality food.