LETTER

National carbon pricing

 

After the whining of provincial and territorial leaders on a national price on carbon, it’s time to talk about a system that reduces greenhouse gas emissions without forcing low-income families to foot the bill – Carbon Fee and Dividend (CFD). CFD proposes a steadily rising revenue-neutral price on carbon pollution.  The price must rise substantially every year to provide a predictable market signal and to drive innovation so that Canada can meet emissions targets. No tax-exempt sectors. Therefore, the carbon price must be levied upstream (at the well-head, mine or point of entry).  100% of the money collected is returned to Canadian households (Corporations exempted) meaning costs and benefits are distributed equitably.  A direct dividend protects low- and middle-income households from higher costs and helps build support for a rising carbon price. Under this plan, most Canadians would break even or receive more in their dividend cheque than they would pay for the increased cost of energy. A predictable increase in carbon price will send market signals, which will unleash entrepreneurs and investors in the new clean-energy economy. Tariffs on goods from countries without carbon pricing will protect Canadian Industries.

The Canadian Ecofiscal Commission report in 2015, “The Way Forward”, uses a revenue-neutral economic model to show where Canada would be in 2020 if regulations or carbon pricing were used to manage carbon pollution. Canada’s 2020 GDP would be 3.7% better under carbon pricing than under the regulatory approach.

The Carbon Fee and Dividend is proposed by Citizens Climate Lobby, a non-partisan volunteer world-wide organization.  This spring, a Canadian delegation lobbied many of our MPs, among them Mr. Greg Fergus.

Natty Urquizo
Gatineau