Cool the carbon-pricing debate and focus on solutions that make people’s lives better

On Oct. 26, Prime Minister Justin Trudeau announced that the federal government will help make heat pumps essentially free for low-income households, starting in Atlantic Canada, and double the rural top-up rate on the carbon price rebate across the country. The measures will bring tangible benefits to low-income and rural Canadians by providing the up-front investment needed to permanently lower their energy bills, especially in the Atlantic where the population is at the highest risk of experiencing energy poverty, and relies the most on oil for primary heating, at the same time as accelerating the energy transition. One may be forgiven for not being aware of this positive news. To hear the Conservatives, provincial premiers, and even some Liberals gleefully touting the demise of carbon pricing, your take-away might be that the Liberal government has reversed its keystone policy of the past few years. None of this is surprising given that the debate on carbon pricing tends to suck all the oxygen out of the climate-policy room. Whether by accident or design, some entirely conflate climate action with carbon pricing when really it should be the floor—not the ceiling—for climate ambition. We’ve collectively spent six years and lots of precious political capital on this debate, which culminated in 2021 with the Supreme Court of Canada deciding that the federal government’s carbon-pricing benchmark was constitutional. Sadly, this was not the end of the story. Conservative Leader Pierre Poilievre organized “Axe the tax” rallies in the midst of Canada’s worst wildfire season, and premiers continued to campaign for exemptions and delay after delay. Now, a temporary pause on the federal price on pollution for home heating oil has spurred frenzied speculation on whether this is the beginning of the end for carbon pricing in Canada. Alex Cool-Fergus is the national policy manager at Climate Action Network Canada. Photograph courtesy of Climate Action Network Canada Let’s take a step back and cool the rhetoric. While carbon pricing is an important part of the policy toolbox, it is only one tool. Contrary to what many economists like to think, politics exists and places significant constraints on how much emissions reductions can be driven through pricing approaches—even ones that leave most households better off. As we are seeing now, the almost gravity-like pull carbon pricing exerts on public attention often takes away from other important investments, programs, and regulations that could be potentially more effective in terms of emissions reductions—while also being a lot more politically feasible. Climate, anti-poverty, and efficiency groups have been asking the federal government to engage in climate policy that is also good for people. Providing energy-poor households with free, net-zero heating technology is smart. The fact that the government has taken a step in this direction is a win for both climate action and affordability, and nobody would dare campaign against it. Rather than trying to compete on the Conservatives’ turf by whittling away at the carbon-pricing system, the federal government must stand strong against those who would use this opportunity to do away with climate action altogether. Some would have us believe that climate is not an important issue to Canadians. Nothing could be further from the truth: a large majority want all-hands-on-deck solutions to meeting the intertwined affordability, housing, and climate crises. Yet while the political class argues about carbon pricing (polarizing the public in the process), oil and gas emissions continue to go essentially unchecked. Fossil fuel profits are reaching staggering heights. Canada’s financial giants are locking our savings into investments that are frying the planet. What if our elected officials at all levels looked beyond the unhelpful carbon-pricing debate, and instead focused on policies that could significantly reduce Canada’s carbon emissions at the same time as improving Canadians’ day-to-day lives? Canadians overwhelmingly support a cap on oil and gas emissions. A net-zero electricity grid would provide affordable energy on a massive scale, and attract new, clean industrial development. Our financial system can be redirected away from fossil fuel lock-in, and towards building and adapting essential infrastructure. Every dollar spent now to help communities prepare for climate disasters will save $13 to $15 in the long run. True, these policies don’t come with rhyming slogans, but they would actually have meaningful impacts on affordability and quality of life. Why not give them a try? Alex Cool-Fergus is the national policy manager at Climate Action Network Canada. The Hill Times