Good afternoon.
Thank you very much for the invitation.
Ladies and gentlemen of the committee, Mr. Chair, it is a pleasure for me to be here to represent Équiterre. My comments will mostly be on section 5, that is, on the price for pollution caused by greenhouse gases.
Équiterre is a not-for-profit organization with charitable status. We have 22,000 members and 110,000 supporters. We have offices in Quebec City, Montreal and Ottawa. We have been involved in environmental and climate issues for 25 years.
To tackle smoking in Canada, our government increased the price of tobacco. To tackle the acid rain that was destroying our forests, President George Bush senior put a price on sulphur dioxide using a cap and trade system. If we want to reduce emissions of greenhouse gases, GHGs, there has to be a tax on carbon. Moreover, this is an international commitment that Canada made in Paris and it is a policy essential for the achievement of our goal. It is a simple, inexpensive approach that has been shown to be effective on a number of occasions.
According to the recent report by Environment and Climate Change Canada on the estimated impacts of the carbon pricing system, it could decrease GHG emissions by 80 to 90 million tonnes in 2022, if Canada and all the provinces and territories adopt a pricing system. That is huge. It is the most significant tool at our disposal. In addition, still according to that report, the impact on the growth of the GDP in Canada would be negligible, as my colleague has already said.
Given that we are still forecasting a shortfall of 64 megatonnes of GHGs compared to our 2030 target, we need these estimated results from the price on carbon. Setting a price on carbon is the norm now. According to the World Bank, more than 67 countries, including China and several other trading partners of Canada's, have already set a price on carbon. It is high time that Canada took the same economic route.
Some are concerned about the potential economic disadvantage that Canadian industry might suffer, but the federal system provides for precise measures to mitigate the risks for the industries exposed to that type of competition. The new clean innovation fund or the low carbon economy challenge, for example, will stimulate a reduction in greenhouse gas emissions in a number of economic sectors, thereby ensuring that our industries remain competitive.
Quebec's greenhouse gas cap-and-trade system covers almost 85% of the economy and has recently expanded again as the Quebec market joined with those in California and Ontario last January 1. For Quebec, the carbon market is the most appropriate economic tool to guarantee reduced greenhouse gas emissions because of its reducing caps and also because of the income it generates. To date, the carbon market has generated revenues of $2 billion, which are channelled in their entirety to implementing Quebec's climate change action plan.
In passing, it must be said that, in Quebec right now, there is a political consensus on the carbon market. No major party in Quebec is opposed to it. It is here to stay.
The revenue from the carbon market auctions goes into the green fund. This fund pays for investments in the economy of tomorrow. Let me give you an example: the fund supports Lion, the Quebec SME that makes school buses that are 100% electric and has more recently started exporting them to California. One day, all school buses in the world will be electric and Quebec will have carved out a part of that lucrative market, thanks to the green fund.
We should note, however, that putting a price on carbon, though it is essential, is not sufficient in itself to attain our goal of reducing greenhouse gas emissions. As a result, provincial and territorial governments must implement complementary policies. Let me give you just one example: regulating GHGs in passenger vehicles, meaning regulating the energy efficiency of those vehicles. Without that, manufacturers are going to continue to spend billions of dollars in advertising so that they can sell us huge vehicles, and especially light trucks. That holds consumers hostage to fluctuations in the price of gas, as we have recently seen.
So it is essential to regulate the energy efficiency of vehicles and light trucks. This is a measure that complements the carbon pricing. The debate about carbon is not a new one. We have been talking about it for a very long time, at least since the 1990s. Consensus has been established in a number of ways. In 2008, the federal Conservative Party at the time adopted a climate change plan entitled “Turning the Corner”, which proposed setting a price on carbon.
Of course, my colleagues have already spoken about the provinces that have since set a price on carbon themselves. So we have some convincing examples.
I also want to emphasize that Canada's target for 2030 was set by the previous government.
I will close by saying that we feel that it is important for a carbon price to be part of a comprehensive climate change plan for Canada. For that reason, we support the bill before you.
Thank you.