LETTER: Why it makes sense to put a price on carbon

SooToday received the following letter to the editor from the "Concerned Citizens of the Sault Ste. Marie Climate Hub."

There has been a lot of misinformation spreading around about the “carbon tax.”

We at the Sault Climate Hub believe it’s time to talk about why a price on carbon makes sense. We recommend that citizens not listen to those who want to politicize this tool that helps to reduce pollution and the effects of climate change.

Multiple environmental goals can be advanced by instituting a price on carbon:

1. Decreased emissions of greenhouse gasses: A carbon tax functions by putting a monetary value on carbon emissions, which in turn discourages businesses and individuals from emitting too much of these gasses. This promotes the use of renewable energy and other sustainable energy sources with lower emissions.

2. A carbon price encourages people and companies to be more energy efficient and cut back on their energy usage. Some ways to accomplish this goal include purchasing energy management systems, installing energy-saving devices, and replacing inefficient equipment with more efficient ones. Less energy use means less carbon emissions when everything is run more efficiently.

3. Incentives for the use of renewable energy sources: A carbon price lowers the relative cost of renewable energy and fossil fuels. Solar, wind, and hydroelectric power are sustainable energy sources with smaller carbon footprints, and this motivates both businesses and families to invest in them. The consumption of fossil fuels and emissions of greenhouse gasses can be mitigated through the widespread use of renewable energy sources.

4. A carbon tax encourages innovation and the development of clean technologies by providing a financial incentive for companies to do so. Research and development increases the likelihood that new, ground-breaking methods and tools will be developed, ultimately leading to a further reduction in emissions. A mindset of innovation is encouraged and the green technology industry is supported in its growth as a result of this.

5. Carbon taxes have the potential to encourage global cooperation in the fight against climate change. Countries may show they mean business when it comes to cutting emissions by instituting a carbon price, which will hopefully inspire other countries to do the same. This has the potential to spark international initiatives to combat climate change and build a better, more sustainable future. In general, carbon taxation can have positive effects on the environment by decreasing emissions of greenhouse gasses, increasing efficiency and the use of renewable energy sources, stimulating research and development of new clean technology, funding environmental programs, and bringing countries together to combat climate change.

Currently, there are 40 national and 25 sub-national jurisdictions around the world who have implemented a price on carbon including Canada. Canada’s carbon tax is designed to create a cost on pollution. It is revenue neutral because all proceeds are returned to the province where they were collected. Most Canadian households are getting more money rebated back to them from the federal carbon tax than they pay. For example, starting in April 2024 a household of four in Sault Ste Marie is paid $1,232 in rebates (four payments of $308).

An average household uses 2000 litres of gasoline and 2,060 cubic metres of natural gas (home heating). Their carbon cost at $80 per tonne is $398 for gasoline and $355 for natural gas, a total of $753. Net saving for this average household is $479.

We are already paying costs of climate change such as higher home insurance to cover increased flooding and forest fires, higher food costs due to more droughts and increased extreme weather events. Canada, like all other countries, needs to reduce emissions and in the near future to bring them to net zero to reduce this threat to our planet. While not perfect, putting a price on carbon is a simple, yet effective tool to help.

Some politicians both provincial and federal are proposing to eliminate the carbon tax. We need to hear their alternatives to a carbon tax to have a reasonable debate. If we decide to do nothing, we are dooming the future for ourselves and those after us.

Click on these links for further information and background:

https://unfccc.int/about-us/regional-collaboration-centres/the-ciaca/about-carbon-pricing

https://news.mit.edu/2018/carbon-taxes-could-make-significant-dent-climate-change-0406

https://www.canada.ca/en/environment-climate-change/services/climate-change/pricing-pollution-ho w-it-will-work/putting-price-on-carbon-pollution.html

https://www.cbc.ca/news/canada/calgary/axe-the-tax-and-carbon-rebate-how-canada-households-aff ected-1.7046905

The Sault Climate Hub is a non-partisan group of concerned citizens advancing climate change mitigation and adaptation to align Sault Ste. Marie with scientific, aspirational, and global targets for greenhouse gas emission reductions through action, education, engagement and other activities. The Hub is part of The Climate Reality Project Canada that serves as the Canadian component of a global movement of millions of diverse and dedicated volunteers, from 154 countries around the world.