PBO is adamant that ‘clean fuel regulations’ will hurt Canadian households economically


Despite heavy criticism from the Liberal Party, the Parliamentary Budget Officer (PBO) clean fuel regulations The (CFR), implemented by the Government of Canada, found that increased costs associated with the policy would place a greater burden on low-income Canadian households in terms of disposable income.

CFR aims to reduce carbon emissions from fossil fuels. 26 million tons By 2030 emissions will be reduced by 2030, and the government is making further efforts to reach net zero emissions by 2050. However, the policy will cost an estimated $231 for low-income households and up to $1,008 for high-income households at the national level in 2030. According to PBO distribution analysis.

The PBO’s conclusion that the CFR is “widely backward” has led Environment Minister Stephen Guilbeau to criticize the Federal Budget Office’s modeling approach. May 18 statement We have overlooked the cost of climate change.

“While we are aware of the PBO’s efforts, their analysis employs a disproportionate modeling approach similar to that of pollution prices,” Guilbeau wrote, citing the PBO’s view. previous report A March study found that most Canadian households would suffer a net loss from the carbon tax introduced by the Liberal government.under the Liberal Party 2030 emission reduction planThe federal fuel tax will increase from $65 per tonne of carbon dioxide in 2023 to $170 in 2030.

Gerald Butts, former adviser to Prime Minister Justin Trudeau defendant The PBO’s incompetence on climate change and its negative impact on policy debates in Canada.

Despite criticism, PBO’s Yves Giroud backed the agency’s analysis and said he had not been questioned by Guilbeau’s own department, Environment and Climate Change Canada, before the minister’s statement.

“I can understand people not being happy to emphasize that government actions have consequences, in this case costs, but I stand by the analysis we have provided,” Giroud said, according to the newspaper. national post office.

“Over the years, we have estimated the cost of many policy proposals without assessing their potential benefits,” Giroud also said in an earlier interview with The Epoch Times.

The CFR, which is due to take effect in July, will see the biggest price hikes for gasoline and diesel. 17 and 16 cents per literMeanwhile, the regulation is projected to reduce Canada’s real GDP by up to 0.3 percent, or $9 billion, in 2030.

“Considering the financial and economic impact of federal fuel costs, we estimate that most households will suffer a net loss. You will pay more for fuel and GST, and you will receive slightly less income.” PBO analysis Said.

The PBO estimates that the federal government will collect and reimburse $11.8 billion in fuel fees across the seven states with fuel fees in 2023-24, rising to $25 billion in 2030-31. there is

Relative to disposable income, the highest average household CFR costs in 2030 are in Saskatchewan (0.87 percent, or $1,117), Alberta (0.8 percent, or $1,157), and Newfoundland and Labrador. (0.8 percent, or $850). According to the report, this reflects the country’s high fossil fuel use.

In contrast, CFR costs to the average household in 2030 are lowest for British Columbians compared to disposable income (0.28 percent, or $384). Meanwhile, the average household costs $495 (0.35 percent) in Ontario and $436 (0.39 percent) in Quebec.

Peter Wilson contributed to this report.