Nouvelle analyse : l'élimination de la tarification
Summary
The analysis finds that while exempting heating oil has a negligible effect on emissions, adding a natural gas exemption would increase 2030 emissions by 4.5 megatonnes. Furthermore, such exemptions would reduce the carbon rebate payments available to most households, negatively impacting affordability, particularly for lower-income groups.
Key insights
- Exempting heating oil from the fuel charge from November 8, 2023, to April 2027 would have a minimal impact on emissions, adding only 111 kilotonnes of CO2 equivalent (0.1 megatonne) by 2030. This is attributed to the low number of heating oil boilers in Canada and the fact that the high cost of oil itself encourages a transition to heat pumps.
- Exempting natural gas from carbon pricing would lead to a more significant increase in emissions, estimated at 4.5 megatonnes by 2030 compared to the current trajectory. This increase represents 8% of the projected gap to reach the 2030 target.
- Carbon pricing exemptions for heating fuels would decrease the total revenue of the program, thereby reducing the Climate Action Incentive payments to households. This would lower affordability for most families, with the most significant proportional negative impact on the poorest households. Only the highest income group would benefit financially from a natural gas exemption.
- In Alberta, the reduction in rebates resulting from these exemptions would decrease average income by 0.07%, and by 0.51% for the poorest households.
- Removing fuel pricing across Canada (excluding British Columbia and Quebec) would increase 2030 emissions by 13.5 megatonnes, which is 23% of the current gap to the 2030 target.
Cite the original document
- APA
- Canadian Climate Institute (2023). Nouvelle analyse : l'élimination de la tarification. https://institutclimatique.ca/nouvelle-analyse-lelimination-de-la-tarification/
- Chicago
- Canadian Climate Institute. Nouvelle analyse : l'élimination de la tarification. 2023. https://institutclimatique.ca/nouvelle-analyse-lelimination-de-la-tarification/.
- Wikipedia
- {{cite report |author=Canadian Climate Institute |title=Nouvelle analyse : l'élimination de la tarification |date=15 November 2023 |url=https://institutclimatique.ca/nouvelle-analyse-lelimination-de-la-tarification/ |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{canadianclimateinstitute2023nouvelle, author = {{Canadian Climate Institute}}, title = {{Nouvelle analyse : l'élimination de la tarification}}, institution = {Canadian Climate Institute}, year = {2023}, month = nov, url = {https://institutclimatique.ca/nouvelle-analyse-lelimination-de-la-tarification/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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