Canadian Economy To Take 1.4% Hit For Trudeau To Realize 2030 Climate Ambitions - Study

Canadian Economy to Take 1.4% Hit for Trudeau to Realize 2030 Climate Ambitions - Study

WASHINGTON (UrduPoint News / Sputnik - 23rd June, 2021) The Canadian economy will contract by 1.4 percent in order for the government of Prime Minister Justin Trudeau to meet its 2030 greenhouse gas emission reduction ambitions, the Parliamentary Budget Officer (PBO) said on Wednesday.

The governing Liberal Party has twice promised to reduce carbon dioxide emissions below Canada's 2030 Paris Climate Accord targets, most recently pledging to reduce emissions by 36 percent below the end-of-decade goal in the 2021 Federal Budget.

"The combined price- and non-price-based measures in HEHE [government's 2020 A Healthy Environment and a Healthy Economy plan] and Budget 2021 would reduce the projected level of real GDP in 2030 by 1.4 per cent," the PBO said in its study titled Beyond Paris: Reducing Canada's GHG Emissions By 2030.

Canada's parliamentary budget watchdog said that aside from the increase to the price-per-ton on carbon dioxide emissions to $138.

27 by 2030, the government would need to implement further non-price and regulatory measures to achieve its goals.

The country's oil and gas sectors would bear the brunt of the measures, the study said, while heavy industry would reap the benefits of being able to tap into alternative sources of energy, which are not taxed under the federal carbon pricing plan.

The Trudeau government has made combating climate change a priority, signing onto the Paris Climate Accord and vowing to exceed targets set at the 2016 summit prematurely. The government's efforts have, however, faced strong criticism from both the political left and right, with Trudeau being concurrently accused of consistently missing existing climate targets and undermining the Canadian resource sector.