Madam Speaker, the government takes the difficulties caused by climate change and the opportunities for clean growth very seriously. We have already announced unprecedented investments in public transit, green infrastructure, and clean innovation, as well as our plan to price 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 caused billions of dollars in damages for 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 it is even real. In failing to implement a credible plan, the Conservatives have put our environment and our economy in jeopardy. Today, we can no longer drag our feet. We need to act. That is exactly what we are doing.
The cornerstone of our plan is pricing pollution, which is largely recognized as one of the most effective means of reducing greenhouse gas emissions. Moreover, it encourages individuals and companies to save by making cleaner choices when it comes to insulating their home or by purchasing more efficient equipment. Consequently, carbon pricing is the cornerstone of Canada’s action plan on clean growth and climate change.
Pricing pollution has proven itself around the world, including in Canada, where it has helped us solve problems such as acid rain while supporting clean growth and innovation. Carbon pricing has been introduced into almost half the world’s economy.
A recent analysis published by Environment and Climate Change Canada confirms that carbon pricing across the country will considerably reduce carbon pollution while maintaining strong economic growth. According to the study, carbon pricing could reduce carbon pollution across Canada by 90 million tonnes by 2022, the equivalent of taking 26 million cars off the road for a year or closing more than 20 coal-fired power plants.
Carbon pricing will go a long way toward achieving Canada’s target for 2030. However, this is not the only thing we are doing to reduce emissions. Canada’s climate change action plan includes many other measures which, in conjunction with carbon pricing, will help 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% a year between now and 2022, with or without carbon pricing. This does not include the huge opportunity of clean innovation. Carbon pricing will 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 with the flexibility to implement the type of system that suits their circumstances. It also sets some common criteria to ensure 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. Our federal carbon pricing system has two components: a charge on fossil fuels that would generally be paid by fuel producers or distributors, and a performance-based system for industrial facilities, called the output-based pricing system.
All revenue from the federal system will be transferred to the jurisdiction of origin. The funds may be used in different ways, including helping homeowners and companies and investing more heavily in programs or technology aimed at reducing carbon pollution.
The main objective of the measure is not to generate revenue for the government but to change how we use carbon-based energy resources and create incentives that will help Canada gain a competitive advantage in the emerging low-carbon economy.
To date, the governments of British Columbia, Alberta, Quebec, and Ontario have implemented carbon pricing and are using the revenue generated in various ways. They can give the money directly to homeowners and companies, cut taxes, or finance programs aimed at reducing 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 were also the top four performers in GDP growth across Canada. That is the result of a long list of factors, but anyone who says that carbon pricing hurts economies is not basing their arguments on the evidence.
Since 2007, B.C.'s carbon tax has reduced emissions by 5% to 15%. Meanwhile, provincial real GDP grew more than 17% from 2007 to 2015 and per capita gasoline demand dropped 15% over that period. B.C.'s growing clean technology sector now brings 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 carbon 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 performed by the Pembina Institute in 2014. Canadian businesses already know carbon pricing makes good sense and will help ensure they remain competitive in the emerging low-carbon economy.
Carbon pollution pricing helps Canadian companies create jobs and gain a competitive edge in the worldwide shift toward cleaner growth. According to the World Bank, this opportunity represents $23 billion dollars between now and 2030. Approximately 85% of the Canadian economy is already subject to a carbon pricing system, and every province has undertaken to adopt some form of carbon pricing.
Canada is creating a business culture that will strengthen the growth of a clean economy. Here are some examples of success stories: CarbonCure, a company that retrofits existing concrete plants so that they can recycle waste carbon dioxide during production to make stronger and more environmentally friendly concrete; Solar Vision, a Quebec company that supplies solar lighting technologies; Enerkem, a company that converts Edmonton’s non-recyclable garbage into fuel and common chemicals; and Agrisoma Biosciences, a biotechnology firm in Gatineau that provides a number of low-carbon options for the biofuel industry.
Making sure that carbon pricing is implemented across the country is a matter of fairness for all Canadians. For 10 years, the Harper government did nothing about climate change. Canadians deserve a plan that will stimulate innovation and create well-paying jobs for the middle class. This is it.