CCL Canada November Education Call with Dr. David Maenz w.r.t. “that” PBO report

CCL Canada November Education Call with Dr. David Maenz w.r.t. “that” PBO report

A discussion with Dr. David Maenz
About the Parliamentary Budget Office PBO report:
A Distributional Analysis of the Federal Carbon Pricing Under a Healthy Environment and a Healthy Economy
Wednesday, November 30, 2022.

In March 2022, Canada’s Parliamentary Budget Office produced a report that unintentionally lead to more confusion and subsequent misinformation and disinformation. We have been lobbying our MPs, and we ran a campaign where over 300 letters were sent to our MPs and the PBO for a new and better study.

But what question should that PBO answer in the next study? This is critical because all good problem-solving begins with a good question.

Dr. Maenz walked through a rationale for a question the PBO should attempt to answer in a subsequent report.

CCL PBO  presentation

ACTION ITEM ARISING: In the first quarter of 2023 we will update our Leave Behind (lobbying ask) and to include a more refined question to the PBO,



Relevant PBO reports and summaries:

A Distributional Analysis of Federal Carbon Pricing under A Healthy Environment and A Healthy Economy
Take home message: The study accurately showed and reaffirmed that a majority of households will be better off financially as a direct result of the carbon tax and rebate. However, the analysis of the secondary economic impacts of carbon pricing will deliver a net loss to most households is flawed
The PBO’s claim that the secondary economic impacts of carbon pricing will deliver a net loss to most households is based on an incomplete picture of the economic benefits that climate action will bring for Canadians. In fact, the report doesn’t even attempt to show the real-world impact of carbon pricing on Canadian households. Rather, it shows how the carbon price would impact the economy in isolation.–distributional-analysis-federal-carbon-pricing-under-healthy-environment-healthy-economy–une-analyse-distributive-tarification-federale-carbone-dans-cadre-plan-un-environnement-sain-une-eco

Global greenhouse gas emissions and Canadian GDP:  If we don’t do enough globally to avert climate disaster, then there is an additional 0.75% cut in GDP. This data pretty much concurs with the recent Canadian Climate Institute report.–global-greenhouse-gas-emissions-canadian-gdp–emissions-mondiales-gaz-effet-serre-pib-canadien


Our ask for cooperation within the Confederation on fair and evidence-based climate policy 

Appreciation: We respect the enduring work of all politicians during this time of converging crises. We are here to help.

The Reality:  The conclusions of the February and April 2022 reports of the Intergovernmental Panel on Climate Change (IPCC) are quite clear. We have just over seven years to cut global greenhouse gas emissions in half but there is a path forward. Governments must enact evidence-based and socially-just policies at unprecedented levels. Thus, Canada’s confederation will have to cooperate at unprecedented levels too.

Since 2010, Citizens’ Climate Lobby Canada has lobbied for a revenue-neutral, economy-wide rising carbon price that includes carbon border adjustment mechanisms (CBAMS). The carbon price must be applied upstream with minimal, principled exceptions, and with dividends equitably returned to households. We are asking parliamentarians to consider:

  1. Move gas-powered electricity from the Output-Based Pricing System into the Fuel Charge section of the Greenhouse Gas Pollution Pricing Act.
  2. Follow the European Union’s lead in implementing CBAMs by 2026. To prepare for CBAMs, Canada’s carbon pricing policies must be harmonized in terms of the price of carbon pollution, coverage (GHG emissions and sources of emissions) and transparency.
  3. Study the appropriate rate of increasing the carbon price beyond 2030 to provide certainty so that households, business and industry can plan accordingly.
  4. Include all measurable GHGs in the Federal GHG Inventory and apply a carbon price to them. With regards to the volatile anaesthetic Desflurane, although our preferred methodology would be pollution pricing we are continuing the discussions and hope to have a clearer view of what the best lobbying ask will be after COP 27.
  5. Request that the Parliamentary Budget Office in future reports on federal carbon pricing take into account the economic, health and environmental costs of climate change and economic benefits of the clean energy economy.
  6. Educate impacted Canadians about the rebates they receive under the GGPPA’s Fuel Charge in provinces where it applies. Most households that receive the rebates are unaware that they realize financial gains from carbon pricing.
  7. (Quebec MNAs only), continue to reduce the emissions cap and/or increase the floor price of the cap-and-trade market sufficiently to meet 2030 emission reduction targets.
  8. (Quebec MNAs only), provide greater transparency on the usage of Green Funds to ensure funds raised by the carbon market are used for their intended purposes.
  9. Additionally, Citizens’ Climate Lobby supports a cap on emissions. In fact, seven out ten Canadians support a cap on emissions. A cap is necessary to maintain geographical and sectoral balance in Canada’s economy as we transition to net-zero.