Madam Speaker, I will be sharing my time with my colleague, the member for Toronto—Danforth, my co-parliamentary secretary for environment and climate change, as well as natural resources.
The opposition is once again tabling a motion that it claims would help Canadians with household costs, but in actuality, it seeks to weaken our efforts on fighting climate change. I will take a few minutes now to explain why action on climate change is so essential, why carbon pollution pricing and clean fuel regulations are core to that action and how we have been able to act while protecting Canadians against affordability impacts.
This summer, as every member of the House knows, Canadians faced devastating wildfires across the country. We saw entire communities evacuated through the flames, and we now face costs to rebuild in the hundreds of millions of dollars. Scientists confirm, and Canadians understand, that these historic wildfires were made much more likely and far more intense because of climate change and that we will continue to face even more severe natural disasters in the future if we do not take serious action now and demonstrate leadership to reduce the carbon pollution that causes climate change.
I will quote a recent article from the Financial Post that leans in on the issue of how serious governments need to have more than one ambition and more than one commitment:
[Carbon pricing] puts a price on greenhouse gas emissions [and it] is often accused of exacerbating rising food costs. This is a mistake. Addressing both food insecurity and climate change must be national priorities and to suggest that we can [improve] affordability if we sacrifice the environment is a dangerous error.
That article and many others go on to explain how climate change is actually far more responsible for rising food costs than is a price on pollution, which is actually one of the solutions to fighting climate change and the intense weather we are experiencing.
Our government understands the urgency of addressing climate change. We know that we need to act now and to act seriously. That is why, since 2016, our government has put in place a comprehensive suite of measures that help Canadians reduce carbon pollution and accelerate the adoption of new clean technologies. Canadians have asked us to take action, and we have delivered.
In fact, in the last election, every single member of this House ran on a commitment to price pollution and to price carbon. Erin O'Toole, as the leader of the Conservatives, ran on a commitment to have a carbon price. This means that every voter in Canada voted for some type of carbon pricing mechanism.
At the heart of this action is an economic tool that economists and experts around the world recognize as one of the lowest-cost and most flexible options to address climate change. That is putting a price on carbon pollution. Economists and serious stewards of the economy know that markets are a powerful tool. They can create prosperities for innovation and solve problems by harnessing the decision-making power and knowledge of millions of households and businesses across the country.
Pricing carbon is a market-based instrument. It is actually at the core of Conservative thinking. Conservative governments across the world believe in these market-based instruments and using markets to influence such things as how much pollution a society can create. This is an example of a Conservative Party that is lost in space. It does not believe in climate change, and it does not believe in the simple math around fighting climate change with a market-based instrument such as a carbon price, despite the fact that all its members ran on one.
I would not be surprised if Conservative members did not even believe in gravity. Climate change is right in front of them. It is absurd to look at that in the face, particularly in the wake of the worst wildfire season our country has ever experienced, and deny its existence entirely.
Markets fight climate change, in large part, by using price signals. Any rare, expensive or desirable good has a higher price, and this spurs new businesses to enter markets, innovate and provide more of these goods and services to find lower-cost ways of delivering them. Putting a price on carbon works the exact same way. It sends a signal that polluting costs us all, encourages the market to create cleaner alternatives and encourages households and businesses to adopt these alternatives and pollute less.
We all pay when we flush the toilet in our homes. When we put our garbage out to get picked up on garbage day, we pay through our property taxes. What comes out of our tailpipes and the emissions created by heating our homes also have costs, and it is important to recognize that those costs actually have a value.
Provinces such as Quebec and British Columbia have been doing this for a long time. I know a lot of Quebec members have stood up and talked about carbon pricing. They have been benefiting from it, as Ontarians did until 2018, when Doug Ford cancelled cap and trade in Ontario.
This is Economics 101, and the opposition should know better than to claim it does not work. They ran on a similar plan. If they were serious about addressing climate change, then they would know that real action requires significant investments and a carbon pollution price will encourage the most efficient and lowest-cost investments possible. Their constant demands to eliminate the price on carbon suggest that they do not understand how the economy works, they do not believe in serious action on climate change, or both. It could also be that they just need something for bumper stickers and T-shirts. I think that is probably the case.
Let me now turn to affordability, which is top of mind for all of us these days. Canadians are facing higher prices because of rapid inflation, which has been driven by pandemic supply chain disruptions, the war in Ukraine and high housing costs because of long-standing shortages. I could stand for 20 minutes and talk about what we need to do in order to address housing costs, but today, we are talking about climate action. We know that governments across the world that take it seriously are taking action.
Our government is focused on an affordability plan across our mandate. Our $8.9-billion plan put in place multiple measures to make life more affordable: enhancing the Canada worker benefit, ensuring affordable child care and dental care, increasing the old age security pension and topping up the Canada housing benefit. This is just to name a few things that the Conservatives consistently voted against. We have continued to work to address the issues that cause affordability impacts by taking action this summer; for example, he have worked to lower the costs of new rental housing and hold grocery store chains to account by managing price increases.
Affordability is baked into our approach on climate change too, and pricing pollution is just the same. First, let us be clear: Carbon pricing is not about raising government revenues, as the opposition has consistently implied. The enabling federal legislation, the Greenhouse Gas Pollution Pricing Act, mandates that every cent of proceeds from the federal system is returned to the province or territory of origin. Jurisdictions that requested the federal system have the option to receive those proceeds directly and use them as they see fit. Nunavut and Yukon did just that with the federal fuel charge. They are using the proceeds to reduce affordability impacts on households and fight climate change.
In other jurisdictions, the federal government returns these proceeds directly to Canadians. For the fuel charge, this means that Alberta, Saskatchewan, Manitoba, Ontario and the Atlantic provinces all receive a climate action incentive rebate four times a year. Ninety per cent of fuel charge proceeds in these provinces are returned via climate action incentive payments delivered directly to households, something that the Conservatives ignore entirely. These are set amounts based on the number of people in the household, with a 10% top-up for rural households.
Over eight out of 10 households receive more money back than the carbon price will cost them in a given year. It is worth pointing out that this 80% is made up of the 80% of households that need it the most. The wealthiest Canadians tend to use more heat, have larger homes, drive less fuel-efficient vehicles and maybe heat more than one home, such as a cottage. There is nothing wrong with that, but the fact is that when one uses more fossil fuels, one ought to pay for the emissions. There are average amounts for lower- and middle-income households, and they particularly benefit. A typical family of four in Ontario received $976 in 2022, and they will receive more this year.
I am often asked about how this is supposed to work. Why collect a carbon price and then return all the money back to households? How can this change behaviour and spur on innovation? The key is the way we return the proceeds. Because the payment is the same for all households, Canadians still get a benefit from reducing pollution, for example, in choosing a cleaner vehicle, switching to a heat pump to heat their home, or insulating their home through one of our many green housing grants. They get the same payment regardless, and they come out ahead. However, the climate action incentive payment reduces the impact on their pocketbook if they cannot make a change right away. Households that do not have short-term options to reduce pollution, such as those where someone just bought a new car or cannot find an insulation contractor, do not see an impact on their finances overall. The incentive payment cancels out most or all of the carbon price.
This approach gives Canadians the flexibility to address climate change when it makes sense for their particular situation. Moreover, it complements the many other measures we have put in place to help Canadians transition to a cleaner economy affordably, such as a $500-million program to support the move to home heat pumps rather than dirty and expensive home heating oil.
There is a lot to talk about today. The clean fuel regulations are another powerful market-based tool for climate action that the opposition is firmly against. I would point out that, since we are focusing on affordability, the number one cost driver of food, particularly vegetables grown in drought-prone places such as California, is climate change. When we resist the need to fight climate change, we are resigning ourselves to more expensive food from places like that.
I will go back to the clean fuel regulations for just a minute. This is another part of Canada's action plan, which is expected to deliver another 26.6-million tonnes of emissions reductions annually by 2030.
Our plan to reduce emissions and ensure affordability is working. The Conservatives should stop standing against climate action.