Prime minister Justin Trudeau announced yesterday afternoon that the federal government would be implementing a “pause” for three years on the carbon price on home heating oil, predominantly used in Atlantic Canada, because he’s in some serious electoral trouble in the region. He also said that enriched carbon price rebates for rural dwellers would be on the way, as well as more incentives for people to switch to heat pumps. The problem? This undermines the whole carbon price scheme, ensures that it no longer is in compliance with the rules that they established, and it hands a propaganda victory to the Conservatives who are crowing that this “proves” that the price is making life unaffordable, and that they’ll kill it outright.
For the sake of reference, this applies mostly to a shrinking portion of Atlantic Canada, where substantial subsidies are in place to encourage heat pump adoption https://t.co/GudWeMAa3e pic.twitter.com/2CrWrMp0q3
— Chris Turner (@theturner) October 26, 2023
Essentially no one north of the St Lawrence river heats with oil. And a large share of people west of the Ottawa River heat with gas. I don't see how this is tenable.
— Andrew Leach (@andrew_leach) October 26, 2023
— Andrew Leach (@andrew_leach) October 27, 2023
It all unravels from here.
— Trevor Tombe (@trevortombe) October 27, 2023
This also handed ammunition to Danielle Smith and Scott Moe, who will now be demanding that natural gas for heating be exempted, because now the programme is explicitly unfair. They’re not wrong, even if they’re acting entirely in bad faith over it. The NDP have joined in, also insisting that all home heating should be exempt from the price, which further undermines it. And you’d better believe that there are problems around the implementation of the heat pump programme, particularly how it rolls out to low-income households who need it the most.
And there it is. https://t.co/IApLbREVV8
— Dale Smith (@journo_dale) October 26, 2023
Receipts:
Federal program: https://t.co/oincG8yvg7 pic.twitter.com/mZkq2z1fdO— Dr. J Robson (@JenniferRobson8) October 26, 2023
If you believe that the incentives in the Oil to Heat Pump Affordability Program needed enhancement to be more effective, it’s kinda’ a weird move to also reduce the visible costs on the other side of the C/B ratio.
— Dr. J Robson (@JenniferRobson8) October 27, 2023
Geeze.. I hadn’t even thought of that.
hooboy— Dr. J Robson (@JenniferRobson8) October 27, 2023
The most galling thing of all, however, is that this is a victory for Irving Oil (and enabled by the provincial price regulators). They deceptively increased prices on their home heating oil and said this was for the “clean fuel standard,” which is bullshit. That standard is not a price—it’s an emissions standard that comes into place gradually, and any increased costs would be what the refineries need to do to meet those standards. This, however, wasn’t well communicated by the government, and of course the narrative got swallowed by the Conservatives calling it “Carbon Tax 2” and a poorly done report from the Parliamentary Budget Officer who framed this like it was a price, and so Irving was able to act in the way it did. And because it’s Irving, and they are more powerful than any of the provincial governments in Atlantic Canada (which is an enormous problem in a democracy), nobody challenged them on this deceptive price increase, and they successfully jammed the federal government into undermining the carbon price, so now it can be picked away at until it’s well and truly dead. Well done, everyone. You’ve just screwed yourselves, your credibility, and ultimately the planet. Slow clap.
There were two choices on the table: a lump-sum credit or a reduction in the carbon price on one source of heating fuel. The choice that the PM made was a bad one, full stop. https://t.co/5IEtoeaNLb
— Andrew Leach (@andrew_leach) October 27, 2023
Canadian Climate Institute, or @ClimateInstit: "Temporarily exempting home heating oil from carbon pricing introduces uncertainty to Canadian climate change policy. It sends the signal to emitters—and investors—that policy can be weakened in the future"
— Paul Vieira (@paulvieira) October 26, 2023
Ukraine Dispatch:
President Volodymyr Zelenskyy says that Wednesday’s drone attack near the nuclear power plant in Khmelnitskyi region was likely targeted. Ukrainian officials say the Black Sea corridor is working, particularly now that they’ve chased away the Russian Black Sea Fleet from occupied Crimea. Ukrainian businesses are preparing for the possibility of another winter of attacks on the power grid.
⚡️President Zelenskyy signs a law on lifelong financial monitoring of top politicians. This is the last step to start negotiations on Ukraine's EU membership.
Source: the Ukrainian Parliament's website— UkraineWorld (@ukraine_world) October 26, 2023
⚡️ISW: Failures near Avdiivka will create long-term problems for Russian offensive.
"The Russian command will likely struggle to offset Russian equipment losses, particularly in armored vehicles," the ISW report said.https://t.co/rAox5PePtn
— The Kyiv Independent (@KyivIndependent) October 27, 2023