Canada must ensure there are broader changes to our economy, beyond carbon pricing alone, if the country is to move toward a low-carbon economy, says a report released in October by the Mowat Centre and the Broadbent Institute.
The two think tanks said that in the lead-up to the UN Conference on Climate Change in Paris, Canada’s new federal government must articulate a broad and clear agenda that recognizes climate change is a fundamental global threat demanding Canadian leadership.
According to Rick Smith, Executive Director of the Broadbent Institute, a price on carbon is a necessary first step, but won’t be enough.
“Although carbon pricing is a core policy idea gaining ground at provincial and federal levels, we need broader policy changes to support a lower-carbon economy,” he said. “First, the price on carbon would have to jump too quickly to create the changes in behaviour needed in the short term. Second, while carbon pricing is likely the most efficient economy-wide measure to address GHG reductions, there are many specific instances of market failure that carbon pricing fails to address.”
In the report titled Step Change: Federal Policy Ideas Toward a Low-Carbon Canada, Mowat and the Broadbent Institute outline seven preliminary policy ideas in addition to carbon-pricing that could help the federal government steer Canada toward a low-carbon economy:
Green Bank of Canada
A state-sponsored financial entity that promotes greater private-sector investment in the low-carbon economy through a variety of mechanisms, such as credit enhancements, guarantees, project aggregation and securitization.
Tax Code Retrofit
A suite of changes to the tax code in favour of energy efficiency, renewable energy, and other sustainable technologies, supported by a phase-out of remaining fossil fuel subsidies.
Accelerated Coal Phase-Out
Amendment to the Reduction of Carbon Dioxide Emissions from Coal-Fired Generation of Electricity Regulations, to accelerate the phase-out of remaining coal-fired power plants.
Green Building Compact
A packaged suite of federal energy efficiency and renewables policies, including a revamp of codes and standards, a National Deep Retrofit Program, and a renewable heating program.
‘Lead by Example’ Mandate
A suite of ambitious initiatives for federal facilities and institutions, including on heat and power, transportation, and institutional investing.
Clean Transportation Strategy
A packaged suite of policies pertaining to transportation, including a progressive Vehicle Emissions Tax, a Zero Emission Vehicle mandate, and a revamp of infrastructure spending and transfer criteria to include GHG goals.
Bio Strategy
A suite of policies promoting best practices in the agricultural and forestry sectors, from cross-compliance with existing funding programs to voluntary initiatives in farming practices.
The package of policy approaches is designed to complement emerging carbon pricing approaches with more aggressive policy, regulatory and legislative tools.
“This report lays the foundation for a national conversation about how to systematically address climate change that needs to happen immediately with the new federal government,” said Paul Sommerville, Executive Director of Mowat’s energy research hub.
“We believe the measures outlined here will attract support of the large majority of Canadians that believe we must do more to address climate change,” he said. “Getting behind the package of policy measures outlined here would send an important signal of our commitment to the international community.”
Calling for a carbon budget
A study by another group, West Coast Environmental Law, calls federal and provincial levels of government, with the advice of a national scientific committee, to set annual carbon emission budgets at both levels on a rolling 15 year basis to fight climate change.
“If you’re in financial debt, you need to budget carefully. With climate change we’re borrowing our children’s future, and we need national and provincial carbon budgets,” said Andrew Gage, Staff Counsel and author of the report. “Carbon budgets can lead to a science-based national plan to fight climate change and deliver on the government’s promises in Paris.”
“Prime Minister Trudeau has promised to work with the provinces to develop a science-based national framework to fight climate change,” said Jessica Clogg, Executive Director and Senior Counsel. “A Carbon Budget for Canada explains how that framework could work.”
West Coast is a non-profit group of environmental law strategists and analysts, based in Vancouver, British Columbia, dedicated to safeguarding the environment through law. It says, “We believe in a just and sustainable society where people are empowered to protect the environment and where environmental protection is law. For more than 40 years, we have played a role in shaping BC and Canada’s most significant environmental laws.”
A Carbon Budget for Canada is available on-line at http://wcel.org/resources/publication/carbon-budget-canada-collaborative-framework.