Canadian Legislative Issues
On October 3, 2016, as the House of Commons discussed the ratification of the Paris Climate Change Agreement, Prime Minister Trudeau stood to lay out a new pillar of his government’s environmental policy. For the first time, he stated that the Federal Government would implement a national carbon price in 2018 that would begin at $10 per tonne of greenhouse gas emissions and increase to $50 per tonne by 2022.
This surprise announcement sent shockwaves across the provinces and all sides of the political spectrum. While the Prime Minister was making this announcement in Ottawa, Environment Minister Catherine McKenna was meeting with her provincial counterparts in Montreal. In response to the news, several of the provincial ministers left the meeting, feeling that it wasn’t necessary to speak with the federal government when they had already made a unilateral decision.
The Liberals also received mixed reviews from the opposition parties. The Conservatives called the announcement a sledgehammer to federal-provincial cooperation, while both the New Democrats and Green Party stated that it didn’t go far enough. Given that polling shows the average Canadian supports a national price on carbon, it appears that Prime Minister Trudeau strategically positioned himself between the two opposition parties. This was further demonstrated when he stated "The NDP thinks we are not going far enough. The Conservatives think we have gone too far. I think, and most Canadians think, we have got the right balance."
Trudeau also positioned himself as the champion for the environment, even though the majority of Canadians are already covered by some kind of carbon pricing scheme in their home province. For example, Ontario and Quebec use a cap and trade system while British Columbia has implemented a carbon tax and Alberta plans to launch their own in January 2017.
Furthermore, while Premiers like Brad Wall from Saskatchewan decry the Federal government for their announcement, it should be expected that sooner or later, all provinces will have plans to price carbon emissions in place as combatting climate change continues to climb in popularity.
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