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B.C. BԪַbetter offBԪַ with carbon tax, but foes have BԪַeasierBԪַ story to tell: analyst

Clean Energy CanadaBԪַs Trevor Melanson says governments should have done a better job explaining tax
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Conservative Party Leader Pierre Poilievre, here seen during a rally Ottawa, on Sunday, March 24, 2024, will hold a rally in Nanaimo Monday as the provincial carbon tax has jumped by 23 per cent to $80 per tonne. But Trevor Melanson, a spokesperson for Clean Energy Canada, said the carbon tax is not the BԪַreal culpritBԪַ of inflation in arguing that most British Columbians will ultimately be better off. Melanson, however, acknowledged that opponents of the tax have an easier story to tell. (THE CANADIAN PRESS/Spencer Colby)

As Pierre Poilievre prepares to mark todayBԪַs carbon tax hike with an Axe the Tax rally in Nanaimo, an energy think tank says the tax will ultimately make most British Columbians better off.

But Trevor Melanson, communications director with Clean Energy Canada, also said tax supporters must do a better job of explaining the tax, which rose by 23 per cent to $80 per tonne April 1.

Melanson said Poilievre and seven provincial premiers opposed to the tax increase are talking about it for political gain.

BԪַThey could choose to ignore it (the tax) and we could all just get on with doing our part to combat climate change,BԪַ he said. BԪַSo part of it is a choice to make it a political fight. But also the BԪַAxe The TaxBԪַ side of this fight has an easier story to tell.BԪַ

Melanson said the argument of the federal Conservative leader and his supporters literally consists of its three-word slogan.

BԪַThey donBԪַt need to tell you anything else for you to have a basic concept what their argument is,BԪַ Melanson said.

The carbon tax is not the BԪַtrue culprit of why things have gotten so expensive in this country and in this province,BԪַ Melanson said in echoing hundreds of economists from university departments across the country. They recently issued a letter stating global factors such COVID-19 and international conflicts have BԪַmainlyBԪַ contributed to inflation, not carbon taxes.

BԪַAccording to the Bank of Canada, carbon pricing has caused less than 1/20th of CanadaBԪַs inflation in the past two years. BԪַClimate change, on the other hand, poses a real threat to CanadiansBԪַ economic well-being. For example, it increases the risk and severity of natural disturbances, such as fires, floods, and severe storms.BԪַ

Melanson said these have become part of daily life.

BԪַSo we all know we need to do something and there is really no-zero cost option here,BԪַ he said. BԪַObviously, not solving climate change is not zero cost. ItBԪַs the most costly option.BԪַ

The public may not fully understand the elegance of the carbon tax and corresponding rebate as a price signal to encourage choices that cut greenhouse gas emissions, Melanson said.

One hundred per cent of this monthBԪַs increase in the carbon tax will be rebated back.

BԪַI look at lots of polling on this, I have been in focus groupsBԪַand the overwhelming majority of people do not (understand) how carbon pricing works,BԪַ he said.

BԪַWhat we needed is something like a national education campaign to help people understand it,BԪַ he said. BԪַI think it could have raised better awareness of a lot of the climate measures they (governments) have been doing.BԪַ

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Melanson added that governments should have done launched such an information campaign years ago.

BԪַ(They) are up against the three easiest words in politics,BԪַ he said.

However, the declining popularity of the carbon tax also may not be just about a failure to communicate.

Currently less than half of BԪַtax householdsBԪַ B.C. BԪַ 43 per cent BԪַ receive the full climate action tax credit. About two-thirds receive a full or partial credits. Government wants to stretch this to 80 per cent by 2030 by raising eligibility thresholds.

Experts have also pointed out that government collects more than in carbon tax revenue than it returns in the form of rebates. B.C.BԪַs budget currently shows government collecting just under $9.1 billion in revenues through the tax, and returning $3.52 billion through the credit.

When asked about this difference, Environment Minister George Heyman said a BԪַsignificant amount of that money goes towards supporting a range of investments and incentives and rebatesBԪַ whether it is for public transportation, zero-emission vehicles or heat pumps.

BԪַWe are also supporting the industry through the Clean BC Industry fund, we are investing substantial amounts in electrification for both the electricity that families will need in the future and industry will need to ensure that they lower their carbon emissions and are therefore more successful, more competitive and pay less carbon tax.BԪַ

Melanson called the tax progressive and moving people in the right direction.

BԪַThatBԪַs largely been the story across the country, that most people end up better off under a carbon price.BԪַ



Wolf Depner

About the Author: Wolf Depner

I joined the national team with Black Press Media in 2023 from the Peninsula BԪַ Review, where I had reported on Vancouver Island's Saanich Peninsula since 2019.
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