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Letter of support for carbon fee and dividend


Earth’s natural systems are under increasing stress from human-induced global warming, and there is grave concern we may be rapidly approaching irreversible tipping points for the earth’s climate. Failure to act now will doom current and future generations to a host of catastrophic effects – shortages of food and water, displacement of millions by rising sea levels, more frequent and severe weather disasters, and possible societal breakdown.


Canada, as one of the world’s leading per capita sources of atmospheric greenhouse gases, must take decisive steps now to reduce its emissions through a national energy strategy and encourage other nations to follow our lead. An important component of such a strategy should be a transparent and effective carbon pricing mechanism. We favour Carbon Fee and Dividend, where the federal government would charge a Carbon Fee on fossil fuels where they first enter the economy as a way to stimulate the transition away from fossil fuel dependence and towards clean energy alternatives. A direct and steadily-increasing carbon fee will accelerate this transition by erasing fossil fuels’ artificial price advantage over energy efficiency and low-carbon energy.


Revenue from the carbon fee would be returned to the public as a Carbon Dividend. The carbon dividend will shield households from the impact of rising fossil fuel costs, while retaining the economic incentives to move consumers away from coal, oil and gas. The clear price signal provided by the carbon fee will push investment toward clean-energy technology and energy efficiency. Such a policy will not only reduce greenhouse gas emissions, it will also foster the creation of the 21st century jobs Canadians need and want.


Imposing border adjustments on imports from nations that do not yet have equivalent carbon pricing would protect Canadian businesses from unfair competition. These tariffs are allowable under World Trade Organization (WTO) rules and will create a further incentive for other nations to adopt their own carbon fee and dividend programs.


For the good of our nation and the Earth, and in the hope that we may preserve a livable world for current and future generations, we the undersigned urge our federal government to implement with the utmost haste a rising carbon fee on fossil fuels, with 100 percent of the revenue generated being returned directly to the public.


We the Undersigned