The October 12 meeting of the CPA Atlantic committee contained plenty of discussion around carbon taxes and the Atlantic Loop.
Committee Chair Royden Boudreau noted to attendees that the CPA continues to work with governments throughout the region to make propane front and center when it comes to looking at affordable solutions for the reduction of GHGs.
With Canada reaching 30- and 40-year highs in the level of inflation on all goods, including energy, the issue of affordability has become very much top of mind for consumers. As a result, the demand for propane has been increasing steadily.
The affordability benefit of propane becomes obvious when the price of heating oil and propane are compared. And that gap will grow in Nova Scotia if, as expected, the province adopts the federal carbon tax. By 2030 the amount of carbon tax in a litre of diesel/heating oil will be upwards of $0.47 and about $0.40 per litre for gasoline. Because it has a lower carbon intensity, the carbon tax on propane by 2030 would be about $0.27 per litre. Still very high but comparably a much more affordable energy option.
The plan to wheel hydroelectricity from Muskrat Falls, Newfoundland and Labrador through the Maritimes into New England by 2030 was also discussed. The "Atlantic Loop” is expected to provide clean hydroelectricity for all of Atlantic Canada.
Energy expert Dr. Larry Hughes of Dalhousie University spoke to the committee and explained some of the challenges the Loop faces in terms of getting the infrastructure needed in place for provinces like Nova Scotia to meet their GHG reduction targets. Dr. Hughes observed that it’s very unlikely that the Loop will be completed on time, more likely by 2032.
Until then, all Maritime provinces will continue to be highly dependent on coal for electricity. Ironically, until such time as the Atlantic Loop is fully operational, Nova Scotia, New Brunswick, and PEI will continue to burn coal to power electric cars.
As part of the CPA advocacy strategy, CPA members will be writing to their MLAs and MHAs to remind legislators of the more affordable and cleaner option of propane.