April 1 and the carbon price goes up 30 per cent, and the carbon tax follows. 14.1c/litre of gas, up 3.2 cents, and then there’s our natural gas bills. What, however, does this mean for BC and, more particularly, our GHG emissions?
BC collected $1.69 billion in 2021 while showing the province spent $1.45 billion, with no indication of what happened to the other $240 million. Their data shows little detail of what capital investments are made and by whom, nor their timeframes/objectives, and no indication of audits to determine objectives are met, but here are some details on the $1.45 billion.
$325 million was redistributed to lower-income earners under the BC Climate Action Plan (BCCAP). Not one kilogram of GHG will be eliminated under this allocation. Instead, additional consumerism will result in greater emissions.
Other allocations include “transit” with $846 million planned in 2022, more than double the $370 million in 2021. The carbon tax is used to exclusively finance transit maintenance and capital, of which we know nothing. Unless it ends up removing gasoline vehicles from the road, it will have no impact on GHG.
Are we paying for BC Transit’s new fleet or subway? The federal imposition of carbon tax, at current levels, results in at least 50 per cent of the money collected not reducing GHG. This, however, accords with the fact BC has not seen a significant shift in total GHG emissions.
The percentage does not get better. The finance minister stated she plans to increase BCCAP, up to $900 million in 2023, by adding two additional affordability credits, basically for two reasons. One, receipts already exceed allocations and receipts increase as the carbon price goes up ($15 each April). Second, the annual surplus would indicate there are not enough reduction initiatives to fund. This $900 million out of a projected $2.3 billion of 2023 carbon taxes will have zero impact on GHGs.
BCCAP is well-intentioned, but the ever-increasing amounts paid out will also assuredly mean the dollars received by individuals will exceed the carbon taxes they pay. A further negative for the environment.
It would be amiss to not record that we pay GST on every dollar of carbon tax collected. The federal government got $84.5 million from BC in 2021 (possibly $350 million nationally).
Impact on GHG?
The current carbon tax and pricing also have little justification when even the prime minister admits there will be negligible impact on oil and natural gas production for at least a decade. It is pertinent that only 26 per cent of natural gas is used directly by households and also that 25 per cent of refined products from every barrel of crude go to non-fuel products, asphalt being one, but also plastics, nylon, et cetera. Yet the producers of oil and gas, and pipeline companies, even utilities, do not seem to be forced by regulation to directly reduce their operational emissions, something that should need no carbon tax from users.
So, here we remain, with what is already an excessive and ever-increasing tax burden, caused by a poorly conceived, poorly structured and poorly managed carbon pricing scheme.
Malcolm Haynes is a City of Powell River resident.
