The carbon price in Canada this weekend saw a record hike from C$50 (~$37) per ton up to C$65 (~$48) per ton of CO2.
Since the climate measure was first introduced, the price increase was usually C$10 ($7.40) every year, but this year, the federal government has tightened up its climate plan and the price hike went up to C$15 (~$11.60).
However, while an increase in carbon price generally comes to mean an increase in prices for consumers, Canada is also promising rebates for millions of households to compensate for the surcharge.
Carbon pricing in the country does vary from province to province, however, which means that citizens will feel the impact of the price hike differently, depending on where they live.
For instance, wherever the federal carbon pricing applies, consumers will experience higher prices on fuel – an additional C$0.14 per liter of gasoline and C$0.17 per liter of diesel, according to the Canadian Taxpayers Federation.
But Environment Minister Steven Guilbeault assured taxpayers that more households in provinces affected by the extra fuel charges will actually get “more money back than what they pay.”
The reason for this is the Climate Incentive Action Payments, which increases alongside the price per ton of emitted greenhouse gas.
But the end goal of the measure remains to eventually make fossil fuels expensive enough for low-carbon alternatives to become a relatively cheaper option.
The study is in line with Canada’s efforts to curb emissions and confirms that both carbon removals and emissions avoidance strategies need to be scaled in British Columbia, in order to meet net-zero targets.