With the federal government under pressure to freeze its planned increase to the carbon tax, here's a look at how the policy is supposed to work and to what extent it is effective.A woman gasses up in Mississauga, Ont., last month. The carbon tax increase on April 1 will amount to an increase of about three cents a litre at the pump.
For instance, a homeowner would be compelled to retrofit their home to save on heating, install a heat pump, or switch from a gas-powered vehicle to an electric.The federal government is pushing back against opposition to the carbon tax increase, including from Conservative Leader Pierre Poilievre. Minister of Energy and Natural Resources Jonathan Wilkinson discusses the benefits to Canadians and why Ottawa believes this is the best way to put a price on pollution.
"You want, especially businesses who are planning for the future, you want them to have some certainty about where the carbon price is going," he said.The carbon tax applies to residents in Newfoundland and Labrador, New Brunswick, Nova Scotia and Prince Edward Island, Ontario, Manitoba, Saskatchewan, Alberta, Yukon and Nunavut.
"The Liberals have pointed to this as the flagship climate policy, and I think that's wrong," said Jessica Green, a political science professor at the University of Toronto who researched carbon pricing.As the Liberals survive a Conservative non-confidence vote to topple the government over the carbon tax, a new report from the Canadian Climate Institute shows that the price on carbon is actually working to reduce emissions.