Mr. Speaker, taking action to tackle climate change is essential for the economy and the environment. Carbon pricing is an important part of Canada’s plan to transition to a cleaner and more innovative economy. In many aspects, agriculture is leading the way in our transition to a low-carbon economy. The agriculture sector has a solid track record in using sound management practices, being innovative, and adopting new technologies to improve environmental performance and reduce greenhouse gas emissions. Canadian farmers have long been responsible stewards of the land and will continue to be part of the climate change solution.
Our government recognizes that farmers and farm families are important drivers of the Canadian economy. The federal carbon pricing system has been carefully designed to limit its impact on the agricultural sector. Greenhouse gas emissions from livestock and crop production are not subject to carbon pricing, and gasoline and diesel fuels for on-farm use will be exempted from carbon pricing under the federal backstop.
In Canada’s plan to price carbon pollution, the provinces can decide on the type of carbon pricing system to adopt and how the revenues will be invested. Revenues can be used in different ways, such as returning money directly to households and businesses, cutting taxes, or funding programs that reduce the cost of clean technology. In some provinces, there are also opportunities for producers to earn revenue from selling carbon offset credits generated through the adoption of practices such as conservation tillage and precision agriculture techniques.
The government is investing in a number of areas, including science and innovation, to help the agriculture sector grow sustainably and to create opportunities for farmers, businesses, and Canadians. For example, the $3-billion Canadian agricultural partnership between federal, provincial, and territorial governments will help producers continue to take action to address soil and water conservation, reduce greenhouse gas emissions, and adapt to climate change.
The government also delivers climate change programming outside of the partnership. The agricultural greenhouse gas program of $27 million over five years, 2016-2021, supports projects that will create technologies and practices and will transfer information on these advances to enable their successful adoption by farmers to reduce greenhouse gas emissions.
The agricultural clean technology program, a three-year, $25-million investment, aims to support the research, development, and adoption of clean technologies in the areas of bioproducts and precision agriculture. These technologies will help to reduce greenhouse gas emissions, generate a range of positive impacts, and promote sustainable and clean growth.