Mr. Speaker, I would first like to inform you that I will be splitting my time with the hon. member for Guelph.
I am pleased to rise today to speak to Bill C-86, the budget implementation act, 2018, no. 2. I want to talk about what I consider one of the most important aspects of the bill, which is the environment and climate action.
Canadians know that pollution has a price. Pollution has an impact on the health of our communities, the strength of our economy and the well-being of Canadians. The evidence is clear. There were floods in my region, the Outaouais, and more specifically in my riding of Hull—Aylmer and the neighbouring riding of Gatineau. Forest fires are causing more and more devastation, and storms are becoming increasingly violent. I repeat: six weeks ago, six tornados hit my riding, and they caused a lot of damage. This was unprecedented.
Climate change is real, and its costs are high. Studies show that climate change is expected to cost our economy $5 billion a year by 2020. Canadians want polluters to pay for this. This is the right thing to do for our children and grandchildren, which is why our government has promised action.
Putting a price a pollution is an effective way to reduce greenhouse gas emissions and help Canada meet its international commitments with regard to this extremely important issue. This means that the price of goods and services will reflect the amount of greenhouse gases that are associated with them. The more we pollute, the more we pay. It is simple. The less we pollute, the more we benefit.
Our government sincerely believes that it is important for business owners and businesses to make more money, but if they pollute, they have to pay. That is all. It is important that our economy better reflect the true cost of pollution and that is what this carbon pricing will do.
It is in that context that the federal government developed the pan-Canadian framework on clean growth and climate change together with the provinces and territories and in consultation with indigenous peoples.
This plan includes a pan-Canadian approach to pricing carbon pollution and measures to reduce emissions across all sectors of the economy. It gives the provinces and territories the flexibility they need to use the system that suits them best, either a price-based system, or a cap and trade system, or a combination of both.
Our government has also committed to implementing a backstop in every province and territory requesting one, as well as in any province that does not adopt a regime consistent with the pan-Canadian framework. I would remind members that the provinces and territories had until September 1 of this year to announce their intentions. Our government was very transparent. We stated from the outset that the federal backstop would have two components. First, there is a charge on fossil fuels such as gas, diesel, natural gas or oil. Second, there is an output-based pricing system for large industrial emitters.
I am very pleased that several provinces have developed their own pricing system for carbon pollution. As Canadians, all of us must take action to reduce pollution, and these governments will be able to do so with a plan that is in keeping with their regional reality. To maintain the pan-Canadian approach to pricing carbon pollution, the federal carbon pollution pricing system will apply as planned in the other provinces and territories.
We recently announced the next steps in our environmental action plan. Some provinces have voluntarily decided to adopt the federal system to varying degrees and work hand in hand with Ottawa. Governments that did not implement the necessary measures will have to comply with the federal system. That is unfortunate, but we made our intentions perfectly clear to the provinces.
Let me be quite clear: in all cases, direct proceeds from the federal price on pollution will flow back to the provinces and territories in which they were collected. Let me repeat that: in all cases, direct proceeds from the federal price on pollution will flow back to the provinces and territories in which they were collected. I really want to emphasize that, because putting a price on carbon pollution is not about filling the federal government's coffers; it is about encouraging cleaner growth and a more sustainable future across this great land.
Provincial and territorial governments that joined the fight against climate change by voluntarily adopting the federal system will receive the direct proceeds and can use that money as they wish. For the four provinces that chose not to put a price on pollution, the federal government will put most of the direct proceeds back in the pockets of families in those provinces.
The government is also in the process of developing options for direct support to sectors of the economy that will be particularly affected in backstop jurisdictions. That includes small and medium-sized businesses, municipalities, non-profit organizations and indigenous communities.
Direct proceeds from the carbon price collected in New Brunswick will remain in New Brunswick. Direct proceeds collected in Ontario will remain in Ontario. Direct proceeds collected in Manitoba will remain in Manitoba, and direct proceeds collected in Saskatchewan will remain, as one might guess, in Saskatchewan. The climate action initiative payments made to individuals and families will help offset the increased costs associated with the price on pollution and will reward families that make cleaner, more sustainable consumer choices.
Since residents of small communities and rural regions have higher energy requirements and more limited access to alternative transportation options, they will receive a supplement to the base amount of 10%. Implementing this formula requires legislative changes.
Bill C-86, the budget implementation act, 2018, no. 2, would give us the tools we need to implement this important initiative. The bill proposes the changes required to enable the Canada Revenue Agency to offer this rebate to eligible taxpayers when they file their income tax returns.
In closing, we must all do our part to reduce greenhouse gas emissions. The pricing of carbon pollution is the most effective and efficient means of achieving that. For that reason, I am pledging my support for this bill and these measures, which I truly and very enthusiastically support.