While a recent Parliamentary Budget Officer report stated that a $50 per tonne federal carbon — the mandated price by 2022 — will end up costing the economy $10 billion per year, that’s the eventual negative hit to the economy after certain rebates are applied. It’s not the raw cost charged on emissions.
Canada currently emits approximately 700 million tonnes of emissions annual. A price of $50 per tonne placed on these emissions comes to $35 billion.
It’s a basic calculation that’s hidden in plain sight but practically never cited in reports and rarely brought up in the national discussion currently underway about the pros and cons of Prime Minister Justin Trudeau’s carbon tax.
The national carbon tax has become increasingly controversial in recent months. While Manitoba premier Brian Pallister has implemented a $25 per tonne carbon tax in his province, he’s vowing to fight the federal government’s plans to double that. Meanwhile, federal Conservative leader Andrew Scheer and provincial leaders Jason Kenney and Doug Ford have come out swinging against, bringing public opinion with them.