When it comes to the Trudeau government’s climate change policies, the one that attracts the most attention by far is the federal fuel charge, but it’s only the tip of the iceberg when it comes to the total costs to taxpayers.
The fuel charge began in 2019 at $20 per tonne of industrial greenhouse gas emissions, initially raising the cost of gasoline by 4.42 cents per litre and natural gas by 3.91 cents per cubic metre, along with increasing the price on 20 other forms of fossil fuel energy.
Today, the federal fuel charge is $80 per tonne of emissions — raising the cost of gasoline by 17.61 cents per litre — on its way to $170 per tonne of emissions in 2030, when it will increase the cost of gasoline by 37.43 cents per litre.
Similarly, the carbon tax increases the cost of natural gas by 15.25 cents per cubic metre this year, on its way to 32.40 cents per cubic metre in 2030.
The Trudeau government says the carbon tax’s rebate system means 80% of households paying it — residents of all provinces except Quebec and B.C., which have separate systems — receive more in rebates than they pay in carbon taxes.
The Parliamentary Budget Officer says when the economic damage caused by the carbon tax is factored in, 60% of households paying it receive less in rebates than they pay in carbon taxes.
However, the Trudeau government’s climate change plan is about a lot more than the federal fuel charge.
Environment Minister Steven Guilbeault boasted last year that the federal government has committed more than $200 billion of taxpayers’ money to addressing climate change in more than 100 government programs.
Among other polices, this includes a carbon pricing system for large industrial emitters, a cap on emissions in the oil and gas sector, methane regulations, clean fuel and clean electricity regulations, green energy tax credits, electric vehicle mandates, subsidies for people who buy EVs and more.
While many economists argue that a carbon tax is the most efficient way to reduce emissions compared to more expensive programs such as regulations and subsidies, the problem with the Trudeau government’s climate change plan is that it has imposed regulations and subsides on top of its carbon tax.