Madam Speaker, farmers are the backbone of our country. Their work is difficult, especially with climate change impacts heavily affecting their livelihoods. They face climate change's harsh realities. Drought, wildfires, floods and invasive species are all becoming more prevalent.
Most Canadians recognize what the Governor of the Bank of Canada has recognized: that putting a price on pollution is not contributing to inflation. The real cause of energy and grocery cost increases is not the price on pollution. It is driven by world market forces such as the massive supply chain shocks that took place during COVID-19 and Russia's illegal war on Ukraine. I would also remind members opposite that most of the emissions from the agriculture sector are not subject to pollution pricing.
We provide exemptions for gasoline and diesel fuel used by farmers in agriculture activities, and there is no price on emissions from livestock. There is also a partial rebate for commercial greenhouse operations. As well, we are returning a portion of the proceeds from the price on pollution directly to farmers in the backstop jurisdictions through a refundable tax credit. This would apply to farmers in Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, P.E.I. and Newfoundland and Labrador. We are also creating economic opportunities for farmers that take further action to reduce emissions through Canada's GHG offset credit system.
We are standing with our farmers, who are on the front lines facing climate change. As responsible stewards of the land, Canadian producers can lead the way in our transition to a low-carbon economy while supporting food security and environmental sustainability. Just as important, some of these practices may generate positive economic benefits.
Canada's approach to carbon pricing reduces pollution at the lowest overall cost to businesses and consumers. It provides an incentive for climate action and clean innovation while allowing businesses and households to decide for themselves how best to reduce emissions. It is a win for farmers, it is a win for the environment and it is a win for Canada. Spreading misinformation will make it harder for us to deal with the real source of the problem, which is climate change. This is why carbon pollution pricing is key. It is one of many tools to address climate change. It cuts emissions. It addresses climate change head on. It sparks new ideas to cut down on pollution.
By putting a price on carbon emissions, we are signalling the environmental and societal costs associated with fossil fuel consumption.