New figures revealed that a pre-election carbon tax break on home heating oil would increase the nation’s greenhouse gas emissions by over a quarter million tonnes. The Prime Minister justified the break for Atlantic Canada, where oil is a primary home heating source, and noted that the Liberals held 24 seats in the region, reports Blacklock’s Reporter.“The Department of Finance estimates the temporary pause of the fuel charge on deliveries of heating oil will lead to foregone reductions in greenhouse gas emissions of about 257,700 tonnes,” the cabinet wrote in a Regulatory Impact Analysis Statement.According to the Analysis Statement, approximately 1.2 million households utilize heating oil. It further confirmed that Atlantic Canada was the primary recipient of the $1 billion tax break. “Approximately 25% of households in Atlantic Canada currently heat with oil compared to approximately six percent across the rest of Canada,” it said.The finance department also confirmed that, despite the loss of tax rebate cheques, reducing the carbon charge on heating oil resulted in a net benefit for households. “At the household level, even with lower carbon rebate payments over time, it is expected households that typically use home heating oil will experience a positive temporary income effect due to the immediate savings,” it wrote.“Savings for Atlantic Canada are expected to be $1,623 higher than the Canadian average,” said the Analysis Statement. Homeowners with oil furnaces typically burned 1,640 litres each winter and would be “incurring lower energy costs,” it said.In 2023, the Prime Minister announced that the tax holiday would continue until the next election. “We have heard clearly from Atlantic Canadians through our amazing Atlantic MPs,” Trudeau said at the time. “There will absolutely not be any other carve-outs or suspension of the price on pollution,” he added.Following the 2024 in-house Privy Council focus group research that revealed Atlantic homeowners’ opposition to the carbon tax due to its perceived cost and futility, the heating oil exemption was introduced. “Asked whether they believed the implementation of a price on carbon would encourage Canadians to reduce their emissions, none expected it would,” said a report Continuous Qualitative Data Collection Of Canadians’ Views. “It was largely felt many individuals would still need to partake in carbon-emitting activities such as driving and heating their homes.”The Government of Saskatchewan, prompted by the carbon tax break on heating oil, instructed its provincial natural gas distributor, SaskEnergy Inc., to temporarily suspend carbon tax collections from its residents. Notably, a legal challenge is currently pending in Federal Court.Earlier, Health Minister Mark Holland, a federal cabinet member, expressed environmental concerns about expanding carbon tax breaks to Saskatchewan residents who use natural gas furnaces. “We have a responsibility to our planet and to the future of this country to make sure we’re taking action on climate change,” he told reporters.“What do you think of Saskatchewan Premier Scott Moe saying his province will no longer collect the carbon tax?” asked a reporter. “Completely irresponsible,” replied Holland.
New figures revealed that a pre-election carbon tax break on home heating oil would increase the nation’s greenhouse gas emissions by over a quarter million tonnes. The Prime Minister justified the break for Atlantic Canada, where oil is a primary home heating source, and noted that the Liberals held 24 seats in the region, reports Blacklock’s Reporter.“The Department of Finance estimates the temporary pause of the fuel charge on deliveries of heating oil will lead to foregone reductions in greenhouse gas emissions of about 257,700 tonnes,” the cabinet wrote in a Regulatory Impact Analysis Statement.According to the Analysis Statement, approximately 1.2 million households utilize heating oil. It further confirmed that Atlantic Canada was the primary recipient of the $1 billion tax break. “Approximately 25% of households in Atlantic Canada currently heat with oil compared to approximately six percent across the rest of Canada,” it said.The finance department also confirmed that, despite the loss of tax rebate cheques, reducing the carbon charge on heating oil resulted in a net benefit for households. “At the household level, even with lower carbon rebate payments over time, it is expected households that typically use home heating oil will experience a positive temporary income effect due to the immediate savings,” it wrote.“Savings for Atlantic Canada are expected to be $1,623 higher than the Canadian average,” said the Analysis Statement. Homeowners with oil furnaces typically burned 1,640 litres each winter and would be “incurring lower energy costs,” it said.In 2023, the Prime Minister announced that the tax holiday would continue until the next election. “We have heard clearly from Atlantic Canadians through our amazing Atlantic MPs,” Trudeau said at the time. “There will absolutely not be any other carve-outs or suspension of the price on pollution,” he added.Following the 2024 in-house Privy Council focus group research that revealed Atlantic homeowners’ opposition to the carbon tax due to its perceived cost and futility, the heating oil exemption was introduced. “Asked whether they believed the implementation of a price on carbon would encourage Canadians to reduce their emissions, none expected it would,” said a report Continuous Qualitative Data Collection Of Canadians’ Views. “It was largely felt many individuals would still need to partake in carbon-emitting activities such as driving and heating their homes.”The Government of Saskatchewan, prompted by the carbon tax break on heating oil, instructed its provincial natural gas distributor, SaskEnergy Inc., to temporarily suspend carbon tax collections from its residents. Notably, a legal challenge is currently pending in Federal Court.Earlier, Health Minister Mark Holland, a federal cabinet member, expressed environmental concerns about expanding carbon tax breaks to Saskatchewan residents who use natural gas furnaces. “We have a responsibility to our planet and to the future of this country to make sure we’re taking action on climate change,” he told reporters.“What do you think of Saskatchewan Premier Scott Moe saying his province will no longer collect the carbon tax?” asked a reporter. “Completely irresponsible,” replied Holland.
