Mr. Speaker, it would be great if I did not have to raise my voice and yell, but the Conservative members want to heckle, so I will continue to speak at a volume that will allow them to hear it. This open letter from economists on Canadian carbon pricing was signed by over 200 leading experts. These are people who are doing research on a regular basis to determine what facts and evidence should be included in the political discourse.

The letter starts:

As economists from across Canada, we are concerned about the significant threats from climate change. We encourage governments to use economically sensible policies to reduce emissions at a low cost, address Canadians’ affordability concerns, maintain business competitiveness, and support Canada’s transition to a low-carbon economy. Canada’s carbon-pricing policies do all those things.

The member for Carleton, the Conservative leader, might call them so-called experts, or he might even call them Liberals. That is not true, and that is not a fact. These are people who work in our universities, teach our students and conduct world-class research, and their facts and evidence ought to be read into the record. I am proud to do that today.

These economists refute five claims. The first Conservative claim is, “Carbon pricing won't reduce GHG emissions.” The open letter states: “What the evidence shows: Not only does carbon pricing reduce emissions, but it does so at a lower cost than other approaches.” This was reiterated by Saskatchewan Premier Scott Moe just the other day, which is that they looked at other things, but they were all more expensive, so they are relying on the federal backstop program. Not only does carbon pricing reduce emissions, but it does so at a lower cost than other approaches.

The open letter continues:

Since federal carbon pricing took effect in 2019, Canada’s GHG emissions have fallen by almost 8 percent...the Canadian Climate Institute shows that federal and provincial carbon pricing, for industries and consumers, is expected to account for almost half of Canada’s emissions reductions by 2030.

That is basic economics and common sense.

The letter further states, “Carbon pricing is the lowest cost approach because it gives each person and business [in our communities] the flexibility to choose the best way to reduce their carbon footprint. Other methods, such as direct regulations, tend to be more intrusive and inflexible, and cost more.”

One of the reasons that Conservatives around the world in other countries rely on carbon pricing is that it is a market-based instrument considered widely as a Conservative approach to lowering emissions.

Conservative claim number two is, “Carbon pricing drives up the cost of living and is a major cause of inflation.” This is totally false. The letter states, “What the evidence shows: Canadian carbon pricing has a negligible impact on overall inflation.”

The Conservatives can repeat their claims and their slogans all they want. That is not science. It is not evidence, It is not math. It is false. The letter continues, “The sharp increase in inflation between 2021 and 2023 was caused by several factors, mainly related to the COVID-19 pandemic...and the impact of the Russia-Ukraine war on commodity prices.”

Just a few minutes ago, the petro-puppet from Carleton was standing in the House suggesting that the war in Ukraine did not cause any inflation in Canada. This is absolutely false. These forces are global, which is why the most advanced countries, whether they have a carbon price or not, experienced very similar inflation. Carbon pricing has caused less than one-twentieth of Canada's inflation in the past two years.

As well, 90% of the revenues generated are rebated back to households, which means that families receive more money in rebates than they pay in carbon pricing, particularly those with low and modest incomes.

The letter states, “Climate change, on the other hands, poses a real threat to Canadians' economic well-being...climate change will cost our economy at least $35 billion by 2030, and much more in future decades.” Again, this reiterates that this is an existential threat for Canadians and for our species on planet earth.

Conservative claim number three is, “It makes little sense to have both a carbon price and rebates.” The letter states, “The price-and-rebate approach provides an incentive to reduce carbon emissions...while maintaining most households’ overall purchasing power (due to the rebate).” Giving most back to families, through the Canada carbon rebate, carbon pricing revenues and rebates do not undermine the goal of the price. As well, there is still the incentive to reduce emissions. This is another Conservative claim debunked by expert economists.

Conservative claim number four is “Carbon pricing harms Canadian business competitiveness.” The letter states:

What the evidence shows: Canada’s carbon-pricing scheme is designed to help businesses reduce emissions at low cost, while competing in the emerging low-carbon global economy.

For large emitting sectors in most provinces—like oil, steel and cement—there is an “output-based” carbon pricing system. In effect, it means most large industries pay the carbon price only on the last 10-20 percent of their emissions. The lower-emitting firms pay less while higher-emitting firms pay more—creating a strong incentive for all firms to reduce emissions.

It is also important to highlight here that the vast majority of the oil and gas used in the agriculture sector, or 97% of it, is exempt from carbon pricing.

Conservative claim number five is, “Carbon pricing isn't necessary.” The letter states, “Here the critics are actually right. Canada could abandon carbon pricing and still hit our climate targets by using other types of regulations and subsidies—but it would be much more costly to do so” for businesses, our economy and for consumers.

The letter continues, “Unfortunately, the most vocal opponents of carbon pricing are not offering any alternative policies to reduce emissions and meet our climate goals.”

There are more than 200 Canadian economists who wrote a letter to the Conservative Party asking it to adjust some of its demands because they are not based on fact or evidence. If there is even one Canadian economist who disagrees with these 200 economists, I would ask Conservative members to bring their facts and evidence to the House and read them into the record because Canadians demand policies that are based on facts, evidence, science and research, not bumper stickers, slogans and overly repeated political rhetoric.

Adam van Koeverden

$531,774.00