Removing carbon price increase emissions, Canadians worse off

The analysis finds that exempting natural gas and heating oil from the federal carbon price would increase emissions and reduce household affordability, particularly for low-income Canadians, due to a decrease in the value of Climate Action Incentive Payments.

• Exempting heating oil from the fuel charge has a negligible effect on emissions, estimated to increase by 111 kilotonnes of CO2e (0.1 megatonne) in 2030. This is attributed to the small number of oil furnaces in Canada and high oil prices that already incentivize a shift to heat pumps.
• Exempting natural gas from the federal carbon price would significantly increase emissions, with an estimated rise of 4.5 megatonnes in 2030 compared to the current trajectory. This increase represents 8 per cent of the projected gap to Canada's 2030 target.
• Removing the carbon price from heating fuels would worsen affordability for most Canadians, especially low-income households, because it reduces the revenue available for Climate Action Incentive Payments (household rebates). In Alberta, the lowest-earning households would see an income hit of 0.51 per cent.
• A total removal of the fuel charge from all jurisdictions except British Columbia and Quebec would lead to an emissions increase of 13.5 megatonnes in 2030, which is 23 per cent of the current gap to the 2030 target.

APA

Canadian Climate Institute (2023). Removing carbon price increase emissions, Canadians worse off. https://climateinstitute.ca/removing-carbon-price-increase-emissions-canadians-worse-off/

Chicago

Canadian Climate Institute. Removing carbon price increase emissions, Canadians worse off. 2023. https://climateinstitute.ca/removing-carbon-price-increase-emissions-canadians-worse-off/.

Wikipedia

{{cite report |author=Canadian Climate Institute |title=Removing carbon price increase emissions, Canadians worse off |date=10 November 2023 |url=https://climateinstitute.ca/removing-carbon-price-increase-emissions-canadians-worse-off/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{canadianclimateinstitute2023removing, author = {{Canadian Climate Institute}}, title = {{Removing carbon price increase emissions, Canadians worse off}}, institution = {Canadian Climate Institute}, year = {2023}, month = nov, url = {https://climateinstitute.ca/removing-carbon-price-increase-emissions-canadians-worse-off/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }