Mr. Speaker, I just want to make sure we make it clear that the member is presenting a picture of the industrial carbon pricing system that simply does not reflect how it works or to whom it applies. There is no carbon tax on food, and farmers are not subject to the industrial carbon price. That is a fact. Independent modelling backs this up.
An analysis from the Canadian Climate Institute and Navius Research shows that the economic effect on industrial carbon pricing on consumption will be extremely small, less than one-tenth of one per cent by 2030. Industrial carbon pricing has essentially no impact on the agricultural sector. The same analysis projects that the cumulative GDP impact on the agricultural sector would be 0.08% by 2030. Farmers do not directly pay the industrial carbon tax, and there are almost no costs passed to consumers.
The system in question applies only to large industrial emitters: the steel, cement, oil and gas, mining and other heavy industries. It was designed so the biggest polluters, not smaller operations like Canadian farmers, are the ones carrying the costs. The intent is straightforward: Cut emissions from major industrial facilities while protecting competitiveness and keeping jobs here in Canada.
Under the federal system, industries have several compliance options. They can make their operations more efficient, including by adopting new technologies; they can generate or buy credits from cleaner performers; or they can pay the carbon price. This is not a one-size-fits-all levy; it is a flexible framework that rewards innovation, drives investment and minimizes cost impacts across the economy.
When Canadians see higher grocery bills, the main drivers are global: disrupted shipping routes, climate-related crop impacts, and the cascading effects of Russia's illegal invasion of Ukraine on fertilizer and energy markets. These are the same pressures facing consumers in Europe, in the United States and around the world.
Our government has taken concrete steps to support producers, and it continues targeted support through the Greenhouse Gas Pollution Pricing Act. We continue to work with farmers and not against them. The idea that scrapping the industrial carbon pricing would suddenly make fruit from the Okanagan cheaper is simply not rooted in evidence. Eliminating climate policy will not reverse climate-related crop losses. It will not stabilize global supply chains, and it will not protect Canadian industries from carbon border measures being implemented by our trading partners.
Climate action and economic strength go hand in hand. We will continue to deliver on both. That is what this side of the House promises.