Canadians Can Expect Even Higher Carbon Taxes In The Next Few Years & Here's Why
Prices are expected to rise significantly in 2023.
At the beginning of the year, Justin Trudeau launched the carbon tax with the goal of getting every province and territory to do their part for reducing pollution and greenhouse emissions. In January, all provinces had to start paying for the pollution that they were responsible for and all provincial governments had to abide by the federal pricing system. Now, a Parliamentary Budget Office report states that higher carbon taxes in Canada are expected in the next few years if they are going to meet targets with the Paris Agreement.
According to Global News, this report states that in order to meet the agreed-upon targets for Canada, an additional cost that goes beyond the gas charges that Canadians have already been seeing will be added to the carbon tax in the future. An additional $6 a tonne will be added in 2023, rising to an additional $52 by 2030.
This means that with the combined federal fuel charges that have already been added, the carbon tax could soon amount to $102 per tonne. Which is five times more than what the country is currently paying now.
The Parliamentary Budget Office told CTV News that this would mean an additional cost of 23 cents per litre when it comes to gas charges under the carbon tax.
Right now, Ontario is only seeing a 4.4 increase per litre under the current carbon tax.
Canada has agreed to reduce emissions by 30 percent from their 2005 emission levels in order to meet the Paris Agreement. However, the PBO states that the nation will fall 79 megatonnes short if they do not raise the carbon tax in an attempt to reduce emissions.
Yet, the report also states that these additional prices that would be added to the carbon tax will result in a greater reduction of emissions – but at a lower cost to the economy.
These reports are based only on estimates, which have been made through examining existing policies and numbers. Things may change once new clean technology statistics have been reviewed.