A carbon price in Canada could help cut emissions by 90 million tonnes by 2022

New analysis from the Canadian Government has claimed that setting a nationwide carbon price could help cut emissions while maintaining a strong economy.

The research, conducted by Environment and Climate Change Canada, found that making businesses pay a price for polluting could help reduce carbon emissions between 80-90 million tonnes by 2022; the equivalent of taking between 23 and 26 million cars off the road.

Canada’s annual projected GDP growth of 2 percent would also be unaffected by the carbon price; instead, it could help spur investments in the booming clean economy.

The agency highlighted how four Canadian provinces have already set some kind of pricing pollution and these also had the strongest economic growth. The provinces, Quebec, Ontario, Alberta and British Columbia, have all decided to use the revenues to provide tax cuts, rebates and clean growth investments. These innovations include retrofitting homes to make them more energy efficient and electric or hydrogen public transport.

The agency is keen to point out its work on the outcomes of a carbon price are based on preliminary estimates, and that the final outcomes depend on the design and choices made by each federal territory.

Catherine McKenna, the Environment and Climate Change Minister, commented that “any credible plan to fight climate change must include a price on pollution.”

“Experience from Canada and around the world confirms that pricing pollution works: it spurs clean innovation and growth, creates good middle-class jobs and gives families and businesses an incentive to make choices that will help them save energy and money. The environment and the economy go hand in hand.”

Interested in learning more about sustainable finance? Join us in New York for the Sustainable Investment Forum North America on the 25th September 2019 for the latest insights from asset owners and managers, banks, development institutions, policymakers, think tanks and NGOs looking to drive the sustainability agenda. 

Click here for further information.