Madam Speaker, it is a pleasure to rise today to speak to the budget implementation bill. In particular, today I will be focusing my comments on the carbon pricing system that the government is proposing to put in place.
Our government is taking very seriously the challenges and opportunities presented by the threat of climate change and the evolution of clean growth. We have already announced historic investments in public transit, green infrastructure, and clean innovation, as well as a plan to put a price on carbon pollution across the country.
Canadians know that pollution is not free. In recent years, Canadians have encountered more frequent and extreme weather events, such as forest fires and floods. Disasters have cost billions of dollars in damages to taxpayers. As the climate changes, this will only get worse. Many people have lost homes and businesses.
For the last decade, the party opposite refused to act on climate change, and some outright denied that it was even real. In failing to implement a credible plan, they put our environment and our economy in jeopardy.
Today, we can no longer drag our feet. We need to act, and that is exactly what we are doing.
A central pillar of the plan is a price on pollution, which is widely recognized as one of the most efficient ways to curb greenhouse gas emissions. It also encourages people and businesses to save money and make cleaner choices, such as better insulating their homes and upgrading to more efficient equipment. As a result, carbon pricing is a foundation of Canada's clean growth and climate action plan. Pricing pollution has a track record of success in the world and here in Canada, where it has helped us tackle problems, such as acid rain, while supporting clean growth and innovation. A price on carbon is already in effect in nearly half the world's economy.
New analysis by Environment and Climate Change Canada confirms that a price on pollution across Canada would significantly reduce carbon pollution while maintaining a strong and growing economy. The study found that carbon pricing could reduce carbon pollution by up to 90 million tonnes across Canada in 2022, as much as taking 26 million cars off the road or shutting down more than 20 coal plants. Carbon pricing would make a substantial contribution to Canada's 2030 target, but it is not the only thing we are doing to cut emissions. Canada's climate plan includes many other measures that work together with carbon pricing to reduce pollution.
The study also found that GDP growth would remain strong with a nationwide price on carbon pollution. Canada's GDP is expected to grow by approximately 2% per year between now and 2022, with or without carbon pricing.
This does not include the huge opportunity of clean innovation. Carbon pricing would help Canadian companies create jobs and compete successfully in the global shift to cleaner growth, an opportunity the World Bank estimates will be worth $23 trillion globally between now and 2030.
More than 80% of Canadians already live in jurisdictions with carbon pricing in place. Our approach recognizes the actions already taken by B.C., Alberta, Ontario, and Quebec. Those provinces had the strongest economic growth in the country last year. The pan-Canadian approach builds on the leadership taken by these jurisdictions and provides all provinces and territories the flexibility to implement the type of system that suits their circumstances. It also sets some common criteria to ensure that the price on pollution is fair and effective across the country.
To ensure that a price on carbon pollution is in place across Canada, the government committed to develop and implement a federal carbon pricing system in any province or territory that requests it, or that does not have a carbon pricing system that meets the federal standard.
Today, governments pricing carbon pollution in B.C., Alberta, Quebec, and Ontario use the revenues in a variety of ways. They can return money directly to households and businesses, cut taxes, or fund programs that reduce the cost of clean technology.
Provinces and territories have until September 1 to confirm their carbon pricing approach. Direct revenue from the application of the federal carbon pricing backstop will remain in the jurisdiction of origin.
In 2017, the four provinces with carbon pricing systems in place, which were British Columbia, Alberta, Ontario and Quebec, were also the top four performers in GDP growth across the country. That is the result of a long list of factors, but anyone who says carbon pricing hurts economies is not basing their argument on the evidence.
Since 2007, British Columbia's carbon tax has reduced emissions by between 5% to 15%. Meanwhile, provincial real GDP grew by more than 17% between 2007 and 2015, and per capita gasoline demand dropped by 15% over that period. British Columbia's growing clean technology sector now brings in an estimated $1.7 billion in annual revenue. We see the same results in other countries. In Sweden, which has the world's highest carbon tax at 137 euros per tonne, GDP and industry have grown while emissions have dropped.
In addition to estimating the costs, it is important to consider the benefits of reducing pollution. This includes the avoided costs of climate change, the long-term financial benefits of transitioning to a cleaner economy, and the benefits that may flow from innovations driven by carbon pricing.
Pollution from coal power plants results in health issues that cost the health care system over $800 million annually, according to a study from 2014.
Canadian businesses already know that carbon pricing makes good sense and will help to ensure that they remain competitive in the emerging low carbon economy. Carbon pollution pricing helps Canadian companies to create jobs and compete successfully in the global shift toward clean growth, an opportunity that the World Bank estimates will be worth $23 trillion globally between now and 2030.
About 85% of the Canadian economy is already subject to a carbon pricing system, and every province has committed to adopt some form of carbon pricing.
Canada is creating a business environment that will strengthen and grow the clean economy. Success stories include CarbonCure, a business that retrofits concrete plants with a technology to recycle carbon dioxide to make stronger, greener concrete; and Solar Vision, a Quebec-based business providing solar lighting technologies; and many more examples.
The impacts of a changing climate are already being felt. From 1983 to 2004, insurance claims in Canada from severe weather events totalled almost $400 million a year. In the past decade, that amount tripled to more than $1 billion per year. Canadians expect polluters to pay because it is the right thing to do for our kids and grandkids.
We know that the costs of inaction are much greater than the costs of taking action now. Taking strong action to address climate change is a critical and urgent step, and making sure there is a carbon price across the country is a matter of fairness for all Canadians.
Canadians deserve a plan that spurs innovation and creates well-paying middle-class jobs. They deserve a serious, smart, and thoughtful plan to protect the environment and grow the economy, and that is exactly what this government is delivering.
I would also like to add that I very much appreciate the participation by the Minister of Innovation and Science in today's debate and for making sure that all of the relevant points in my speech were highlighted effectively.