The federal Liberal government has walked back parts of its carbon pricing inititative, one of the main planks in its climate policy. It's a relatively minor walk-back in the scheme of things, but it still muddies the waters on what was a relatively clear and commendable policy, and it lays the government open to allegations of regional favouritism.
For a period of three years, it is pausing carbon pricing on home heating oil, one of the dirtiest fuels in use (and therefore incurring a higher carbon price than other fuels), and one much more widely used in Atlantic Canada than anywhere else. It is also increasing the quarterly carbon pricing rebates for these households, and making it easier and cheaper (essentially free for families making at or below the median income) for them to switch to more environmentally-friendly electric heat pumps.
So, you can see where the government was going with this - to encourage fuel oil users to switch to heat pumps - but what a mixed message it sends! Wouldn't it be better to encourage low-carbon heat pumps while punishing heavy carbon-emitters, rather than rewarding them? Isn't that the whole point of an escalating carbon tax? Environmental groups are incensed at this watering down of a key climate program. They see this as the first step on a slippery slope towards more exemptions.
As it coincides with a bunch of polls out of Atlantic Canada showing the Liberals suffering politically in the wake of the imposition of the carbon tax there, and as the wily Pierre Poilievre has been sniffing around the region in recent months looking to capitalize, this has a very bad look for the Liberals.
And anyway, rewarding people for using the dirtiest fuels possible can't possibly be a good move, whatever the theory behind it may be. The whole idea behind a carbon tax is that the polluter pays, and the bigger the polluter the more they pay. I'm fine with subsidized heat pumps, but encouraging fuel oil use? No thank you.
UPDATE
And now - go figure! - other Conservative premiers are demanding relief from the carbon tax. Who saw that coming? And of course, never one to miss a trick, Pierre Poilievre. Trudeau has made a rod for his own back, and, frankly, I don't have a lot of sympathy.
It's when it reaches the biting point and starts to hurt that a carbon tax actually becomes effective, and starts to change people's attitudes and behaviours. Trudeau's actions have thrown all that away, and just raised resentment instead. He has possibly just sounded the death knell of the whole carbon tax experiment.
In the process, he has set one region of Canada against another, threatening what little is left of our national unity too, AND opened the door to the raging bull that is Pierre Poilievre at the next election (or even before). A revolt within the Liberal caucus itself may be brewing, and it has prompted former Liberal Environment Minister Catherine McKenna to publicly call the government out and to suggest that they actually reverse this ill-advised carbon tax exemption while there is still time (a tough and embarrassing call, but better than living with the alternative). Ex-Bank of Canada governor and potential future Liberal leader (here's hoping!) Mark Carney has also strongly criticized the decision.
All in all, this was Trudeau's single worst decision, among many. His credibility is now toast. Good job.
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