Madam Speaker, the third part of Bill C-4 reflects what could be called the Prime Minister's environmental fiasco. Actually, what we are witnessing with the abandonment of consumer carbon pricing is the beginning of the official end of the fight against climate change. This step back was taken on April 1, before the people had even given him an electoral mandate.
Instead of countering the Conservatives' carbon pricing disinformation, the Prime Minister simply starting chanting from their slogan sheet by eliminating one of the flagship measures for achieving the country's greenhouse gas reduction target. Since then, it has been one step back after another, back to the Stone Age, which happens to be exactly what the Leader of the Opposition wanted. That is what we are seeing. In the end, the oil companies will have gotten everything on their wish list, courtesy of the government.
Added to this, more recently, is the climate capitulation budget. The icing on the cake is a new oil sands pipeline. Getting back to Bill C-4, it is the elimination of the carbon pricing rebate. Let us be clear. This spells the end of any possibility of meeting Canada's greenhouse gas reduction targets. Obviously, the Bloc Québécois strongly opposes this environmentally irresponsible behaviour. This shows that the government has no intention of fighting climate change. It also highlights a major injustice for Quebeckers. I am talking about the elimination of the carbon rebate that came with a cheque for Canadians outside Quebec, but was paid for with Quebeckers' money. They were not entitled to a cheque. That means that money from Quebec was taken out of Quebeckers' pockets and sent as election goodies in the form of cheques worth $814 million in the middle of an election campaign. Once again, that money came out of Quebeckers' pockets.
The government told us that it was going to increase industrial carbon pricing, but this bill does not mention that at all. If we look at what is happening abroad, in the rest of the world, on January 1, the European Union will be imposing a tariff on the import of products and goods from other countries. If there is no price on pollution in those other countries, Europe will put a price on carbon at the border. Right now, given the uncertainty in the United States under Mr. Trump and given that access to the U.S. market is becoming more difficult, it is clear that this would be the worst time to close our doors to the European market. This is especially true given that the consumer carbon price is being removed in Canada and we do not yet know what will happen to industrial carbon pricing.
I want to remind the House that the Commissioner of the Environment and Sustainable Development believes that carbon pricing is one of the few effective aspects of the federal greenhouse gas reduction plan. By ending carbon pricing, however, the government is not only giving up the fight against climate change, it is also leaving Quebec in the lurch after it has once again been cheated, literally robbed. The Bloc Québécois has repeatedly demanded that the government acknowledge this situation in its budget and return the $814 million in question to Quebeckers. We are not alone in calling for this; the Quebec National Assembly is calling for it too. Every one of the parties in Quebec City is unanimously calling for the federal government to return that money to us. What has the government and its 44 Liberal members from Quebec done? They have shown us that they are utterly incapable of supporting the Quebec National Assembly's unanimous demand. They are ignoring Quebeckers and condoning the fact that Quebeckers were just robbed of $814 million to send out vote-buying cheques.
When we talk about carbon pricing, it is worth remembering that Quebec has a price on carbon. Quebec established a carbon market; it has taken action. However, by removing carbon pricing in the rest of Canada, the government is obviously putting Quebec at a disadvantage. It is important to remember that nearly 90% of the money collected by the government was returned to citizens outside Quebec. This rebate allowed 80% of the population, or the majority of households, to receive more money than they paid in carbon pricing.
The former environment minister said very clearly that this was a very good measure to combat climate change. However, what was the first thing we saw the new Prime Minister do? He took a big pen and, like Donald Trump, signed an executive order to proudly abolish carbon pricing, which the previous government and the previous environment minister considered to be a good environmental measure. The Liberals even dared to abolish this measure on April 1. What did they do on April 22, which is Earth Day? On Earth Day, they decided to send Canadians cheques totalling $3.7 billion. That was $3.7 billion to buy votes in an election campaign.
Obviously, it is important to remember how carbon pricing works. It is a rebate that has always been paid in advance. It was therefore an advance payment to households. This money was not being reimbursed. In other words, Canadians received a cheque for money they had never actually paid. I repeat that Quebeckers did not receive any, but they did pay for it. We believe that this amounts to funding the environmentally irresponsible behaviour of the Canadian provinces at the expense of Quebeckers. Quebec is being penalized because it has made efforts to fight climate change. The government stole money from the pockets of Quebeckers to reward Canada for not making an effort. That is why the Bloc Québécois is calling on Ottawa to unconditionally transfer the $814 million that was paid by Quebec, because those cheques were written for a carbon pricing system that no longer even existed. They were sent on Earth Day, which is truly a dark day and marked the beginning of the end of the government's fight against climate change.
The Prime Minister justifies his lax approach to combatting climate change—or rather his abandonment of the fight against climate change—by invoking Canada's need for economic development. What is the logic behind saying that we are going to develop the Canadian economy when we need to develop international trade partnerships with other countries, yet EU countries and other countries are going to impose carbon pricing at the border for non-compliant countries that do not put a price, or a high enough price, on carbon? What will the Prime Minister say to these trading partners when he himself abandons important measures? There is uncertainty in the United States, we agree, but we know that we need to strengthen trade ties outside the North American bubble.
I would like to point out that Quebec accounts for one-third of trade between Canada and Europe. We receive nearly 40% of European investment in Canada. We have an advantage and we are the gateway to Europe. Quebec is, in a way, the bridge between America and Europe. Obviously, we hope that Quebec will be able to double its trade with Europe, including, of course, the United Kingdom. Ideally, we would increase it from $42 billion to $84 billion within five years.
However, Europe currently has the carbon border adjustment mechanism. In 2023, the European Union adopted legislation creating this carbon border adjustment mechanism, which is set to come into force on January 1, 2026. What Europe wants to do is prevent carbon leakage and avoid unfair competition from competitors located in places where it is free to pollute. Europe will therefore impose a tax adjustment. Again, Europe will impose a tax adjustment on imports of certain products from countries where carbon pricing is too low or non-existent. This is now the case in Canada. In 2024, the United Kingdom also adopted legislation similar to the European law. The U.K. law will come into effect on January 1, 2027.
This is the direction the world is heading in. We need to keep that in mind when we talk about carbon pricing. Pollution comes at a cost, and a price has to be put on that cost. Other countries are preparing to do so, and Canada will pay a very high price if it ignores the cost of pollution. Canada intends to pass the cost on to taxpayers as a whole, forcing them to pay the cost if the companies that pollute do not.
Essentially, when a product enters Europe, a levy will be charged that is equal to what the carbon price would have been in Europe. In the beginning, this levy will apply to select products, such as aluminum, iron, steel, cement, fertilizer, hydrogen and electricity. Gradually, it will be extended to include all goods. While border carbon adjustments may be a new mechanism, similar mechanisms already exist. They are completely legal and trade-rule compliant. Examples of equivalent measures include the excise tax on tobacco or alcohol, which is charged when these products leave the factory where they are made, or at the border for imported goods. This is a global trend that Canada is bucking.
The World Bank compiles a list of carbon pricing mechanisms around the world. In 2023, it counted 53 countries with carbon pricing. That is five more than in 2022, 12 more than in 2021, and 69 more than 20 years ago. The trajectory is very clear. The world is waking up to the reality of climate change and is putting a price on pollution by choosing carbon pricing. No country in the world has abolished its carbon pricing. Canada would be the first to choose this path. Clearly, it is sinking deeper into climate irresponsibility, primarily to satisfy oil and gas companies.
It should be noted that carbon pricing does not apply in Quebec. Quebec has its own cap-and-trade system for emissions. It is not the only one to have implemented such a system. It works with the Western Climate Initiative, among others, with California. There are exchanges between companies, including between Quebec and California. Together, they have a combined GDP of $4.8 trillion. That is enormous. It is a major market. There has never been carbon pricing at the federal level in the United States. The states are taking action. Washington is also taking action in this regard. Having Mr. Trump as President does not change the situation.
Nothing has changed, since individual states are continuing to move forward. California has even strengthened its market under the cap-and-trade system and committed to reducing its greenhouse gas emissions even further. This means that the fight against climate change is accelerating in certain countries, whether in the state of California or in the European Union, which, although imperfect, is continuing the fight against climate change. That is the opposite of Canada, which is bucking the global trend. Quebec could once again suffer because Canada has taken on certain responsibilities while Quebec is going to play by a different set of rules. In Quebec, we decided to put a price on pollution because, otherwise, it is passed on to society as a whole. We need to have carbon pricing, just as we have other types of pricing. There is a price for electricity and a price for water consumption. There must be a price for pollution, because it is not free.
The Conservative Party wants to abolish industrial carbon pricing. According to the Conservatives, any pricing would be bad. They never explain how we are going to combat climate change if we abolish the basic principles recognized by some of the world's most renowned economists. There is a consensus that putting a price on carbon is an effective measure, and it is a measure that the world is moving towards.
For its part, Canada has chosen to return to the 20th century. It wants to abolish and reduce carbon pricing. Once again, this will undermine the efforts of Quebeckers, who believe it is important to diversify exports and export destinations and to ramp up trade with Europe. Obviously, Quebec's businesses, our SMEs, will find themselves at a disadvantage if the rest of Canada does not feel the same way.
I would like to remind members that both the European Union and the United Kingdom have implemented exemption schemes and carbon pricing at the border. The Bloc Québécois will oppose this bill to ensure that Canada stops thwarting Quebec's efforts to diversify its markets and combat climate change. We will not allow ourselves to be distracted by the Trump effect. There is a global reality on which countries are taking action, and I mentioned several examples, but unfortunately, it is not a reality that Canada has embraced so far.
It is not just one measure. If there were something to replace that and if it could be shown that there was a willingness to meet the country's greenhouse gas emissions reduction targets, comply with the Paris Agreement and reduce pollution, we would believe it. Unfortunately, the very first thing that the new Prime Minister did, through an order in council, was followed by several other steps backward. That is concerning from the standpoint of the fight against climate change. This is not just one major step backward. We were expecting the government to show us a climate competitiveness strategy that would highlight the government's commitment but, in reality, there is no new money to fight climate change. There is no clarity on industrial carbon pricing. How much will it cost? To what extent will it be increased? What kind of additional greenhouse gas emission reductions will it bring? In fact, we see a desire to come to an agreement with Alberta, which is currently refusing to harmonize its industrial pricing system with the Canadian system. Once again, this will likely lead to a decrease in Alberta's commitments.
We cannot give a blank cheque to a government that is eliminating important measures, such as consumer carbon pricing, while giving billions of dollars more in its latest budget to increase or extend funding and subsidies to oil and gas companies, removing the cap on greenhouse gas emissions from the oil and gas sector, and striking a deal with Alberta that makes it very clear that they plan to harmonize their standards. Harmonizing with Alberta means lowering the standards. Just look at the carve-out for Alberta on the clean electricity regulations.
For us, abolishing industrial carbon pricing means abandoning the fight against climate change, and that is completely irresponsible—