{"id":98208,"date":"2025-06-11T19:28:06","date_gmt":"2025-06-11T19:28:06","guid":{"rendered":"https:\/\/resourcework2.devstudio.work\/?p=98208"},"modified":"2025-06-12T17:29:15","modified_gmt":"2025-06-12T17:29:15","slug":"canadas-carbon-tax","status":"publish","type":"post","link":"https:\/\/resourcework2.devstudio.work\/?p=98208","title":{"rendered":"The carbon tax\u2019s last stand \u2013 and what comes after"},"content":{"rendered":"\n

For years, Canada\u2019s political class sold us on the idea that carbon taxes were clever policy. Not just a tool to cut emissions, but a fair one – tax the polluters, then cycle the money back to regular folks, especially those with thinner wallets.<\/p>\n\n\n\n

It wasn\u2019t a perfect system. The focus-group-tested line embraced for years by the Trudeau Liberals made no sense at all: we\u2019re taxing you so we can put more money back in your pocketbooks<\/em>. What the hell? If you care so much about my taxes being low, just cut them already. Somehow, it took years and years of this line being repeated for its internal contradiction to become evident to all.<\/p>\n\n\n\n

Yet, even many strategic conservative minds could see the thinking had internal logic. You could sell it at a town hall. As an editorial team member at an influential news organization when B.C. got its carbon tax in 2008, I bought into the concept too. <\/p>\n\n\n\n

And now? That whole model has been thrown overboard, by the very parties had long defended it with a straight face and an arch tone. In both Ottawa and Victoria in 2025, progressive governments facing political survival abandoned the idea of climate policy as a matter of fairness, opting instead for tactical concessions meant to blunt the momentum of their foes.<\/p>\n\n\n\n

The result: lower-income Canadians who had grown accustomed to carbon tax rebates as a dependable backstop are waking up to find the support gone. And higher earners? They just got a tidy little gift from the state.<\/p>\n\n\n\n

The betrayal is worse in B.C.<\/p>\n\n\n\n

This new chart from economist Ken Peacock tells the story. He shared it last week at the B.C. Chamber of Commerce annual gathering in Nanaimo.<\/p>\n\n\n\n

\"Ken-Peacock-slide
Ken-Peacock- B.C. Chamber of Commerce annual gathering in Nanaimo. <\/figcaption><\/figure>\n\n\n\n

What is shows is that scrapping the carbon tax means the poor are poorer. The treasury is emptier. <\/p>\n\n\n\n

What about the rich? <\/p>\n\n\n\n

Yup, you guessed it: richer.<\/p>\n\n\n\n

Scrubbing the B.C. consumer carbon tax leaves the lowest earning 20 percent of households $830 per year poorer, while the top one-fifth gain $959. <\/p>\n\n\n\n

\u201cClimate leader\u201d British Columbia\u2019s approach was supposed to be the gold standard: a revenue-neutral carbon tax, accepted by industry, supported by voters, and engineered to send the right price signal without growing the size of government.<\/p>\n\n\n\n

That pact broke somewhere along the way.<\/p>\n\n\n\n

Instead of returning the money, the provincial government slowly transformed the tax into a $2 billion annual cash cow. And when Mark Carney won the federal election, B.C. Premier David Eby, boxed in by his own pledge, scrapped the tax like a man dropping ballast from a sinking balloon. Gone. No replacement. No protections for those who need them most. <\/p>\n\n\n\n

Filling the gas tank, on the other hand, is noticeably cheaper. Of course, if you can\u2019t afford a car that might not be apparent. <\/p>\n\n\n\n

Spare a thought for the climate activists who spent 15 years flogging this policy, only to watch it get tossed aside like a stack of briefing notes on a Friday afternoon. <\/p>\n\n\n\n

Who could not conclude that the environmental left has been played. For a political movement that prides itself on idealism, it\u2019s a brutal lesson in realpolitik: when power\u2019s on the line, principles are negotiable.<\/p>\n\n\n\n

But here\u2019s the thing: maybe the carbon tax model deserved a rethink. Maybe it\u2019s time for a grown-up look at what actually works<\/p>\n\n\n\n

With B.C. now reviewing its CleanBC policies, here\u2019s a basic question: what\u2019s working, and what\u2019s not?<\/p>\n\n\n\n

A lot of emission reductions in this province didn\u2019t come from government fiat. They were the result of business-led innovation: more efficient technology, cleaner fuels, and capital discipline. <\/p>\n\n\n\n

That, plus a hefty dose of offshoring. We\u2019ve pushed our industrial emissions onto other jurisdictions, then shipped the finished goods back without attaching any climate cost. This contradiction particularly helped to fuel the push to dump carbon pricing as a failed solution.<\/p>\n\n\n\n

The progressives\u2019 choice was made once the anti-tax arguments could no longer be refuted: to limit losses it would be necessary to deep six an unpopular strand of the overall carbon strategy. This, to save the rest. That\u2019s why policies like the federal emissions cap haven\u2019t also been abandoned.<\/p>\n\n\n\n

To give another example, it\u2019s also why British Columbia\u2019s aviation sector is in a flap over the issue of sustainable aviation fuel. Despite years of aspirational policy, low emissions jet fuel blends remain more scarce than a long-haul cabin upgrade. The policy\u2019s designers correctly anticipated that refiners would never be able to meet the imposed demand, and so as an alternative they provided a complex carbon credit trading scheme that will make the cost of flying more expensive. For those with a choice, nearby airport hubs in the United States where these policies do not apply will become an attractive alternative, while remote communities that have no choice in the matter will simply have to eat the cost. (Needless to say, if emissions reduction is your goal this policy isn\u2019t needed anyways, since the decisions that matter in reducing global aviation emissions aren\u2019t made in B.C. and never will be.)<\/p>\n\n\n\n

I\u2019m not showing up to bash those who have been genuinely trying to figure things out, and found themselves in a world of policy that is more complicated and unpredictable than they realized. Simply put, the chapter is closing on an era of energy policy na\u00efvet\u00e9.  <\/p>\n\n\n\n

The brutally honest action by Eby and Carney to eject carbon taxes for their own political survival could be read as a signal that it\u2019s now okay to have an honest public conversation. Let\u2019s insist on that. For years now, debate has been constrained in part by a particular form of linguistic tyranny, awash in terminology designed to cow the questioner into silence. \u201cSo you have an issue with clean policies, do you? What kind of dirty reprobate are you?\u201d \u201cOnly a monster<\/em> doesn\u2019t want their aviation fuel to be sustainable.\u201d Etc. Now is the moment to move on from that, and widen the field of discourse.<\/p>\n\n\n\n

Ditching bad policy is also a signal that just maybe a better approach is to start by embracing a robust sense of the possibilities for energy to improve lives and empower all of the solutions needed for tomorrow\u2019s problems. Because that\u2019s the only way the conversation will ever get real.<\/p>\n\n\n\n

Slogans, wildly aspirational goal setting and the habit of refusing to acknowledge how the world really works have been getting us nowhere. Petroleum products will continue to obey Yergin\u2019s Law: oil always gets to market. China and India will grow their economies using reliable energy they can afford, having recently approved the construction of the most new coal power plants in a decade amid energy security concerns. Japan, which has practically worn itself out pleading for natural gas from Canada, isn\u2019t waiting for the help of last-finishing nice guys to guarantee energy security: today, they are buying 8% of their LNG imports from the evil Putin regime. <\/p>\n\n\n\n

Meanwhile, we\u2019re in the worst of both worlds: our courageous carbon tax policy that was positioned as trailblazing not just for B.C. residents but for the world as a whole \u2013 climate leadership! \u2013  is gone, the poorest are puzzling over why things feel even more expensive, and nobody knows what comes next.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

How a clever idea lost its shine<\/p>\n","protected":false},"author":5,"featured_media":98210,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[703],"tags":[18],"class_list":["post-98208","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-economy"],"acf":[],"yoast_head":"\nThe carbon tax\u2019s last stand \u2013 and what comes after -<\/title>\n<meta name=\"description\" content=\"For years, Canada\u2019s political class sold us on the idea that carbon tax was a clever policy. 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