The Canadian Trucking Alliance (CTA) today called on the federal government to take a fair and sensible approach to how carbon pricing applies to Canada’s trucking industry and work in partnership with the private sector as it transitions to the green economy. While CTA and Environment and Climate Change Canada continue to work on the details of a potential green incentive fund for the trucking industry, trucking and its supply chain customers are preparing for a hike in the carbon price on diesel with no offsetting carbon equipment purchasing program in place.
“CTA fully supports the federal government’s mandate to reduce carbon emissions across the country. But their current approach to applying carbon pricing to diesel fuel consumed by our sector, with no offsetting carbon equipment incentive program, means our industry is investing in a climate change strategy that produces little emissions savings at a growing cost to the entire supply chain,” said CTA’s Director of Policy Lak Shoan. “By reinvesting carbon pricing revenue into a carbon reduction equipment incentive program for Canada’s trucking industry, the federal government would see more adoption and increased market penetration of emissions-reducing technologies and show carriers their investment at the pump is being redirected toward our sector to further improve the environment.”
The federal carbon pricing regime, which took effect April 2019, has added an additional 5.37 cents a litre in carbon pricing on all diesel fuel consumed by trucking companies in Manitoba, New Brunswick, Ontario and Saskatchewan (and as of January 1, 2020, Alberta). The carbon price is scheduled to rise to 8.05 cents per litre on April 1, 2020, 10.73 cents per litre in 2021, and 13.41 cents per litre in 2022.
“CTA and its members are strong supporters of Environment Canada’s carbon regulations on heavy truck equipment. These regulations are effective and have resulted in the trucking industry investing more than $6 billion in carbon reducing technology, producing tangible and significant carbon emission reductions from our sector,” said Shoan. “Regardless, the government and the trucking industry know that diesel engines remain the only viable technology available to long-haul trucking fleets. The solution is simple: stop placing a carbon price on diesel for heavy trucks or reinvest all carbon price revenue placed on the trucking industry into technology that will help the sector transition to greener business practices.”
In other matters related to carbon pricing applied to diesel fuel, the Quebec Trucking Association (QTA) has raised an issue of double taxation on the Quebec industry as a result of their members facing both a federal and provincial carbon pricing system.
“The Quebec system (SPEDE) has been duly recognized by the federal government,” said Marc Cadieux, CEO, Quebec Trucking Association. “Carriers having fueled in Quebec face double taxation when they travel to provinces subject to the federal carbon pricing system. The fact that Quebec carriers are taxed at the pump under a recognized system, and then again under the federal system, creates a competitive inequity with carriers from provinces without a provincial carbon pricing system. This situation needs to be addressed.”
CTA is also recommending that all trucking companies in Canada and members of the supply chain continue to discuss the impact of carbon pricing with their customers so they can understand the operational realities and concerns the sector is facing due to the system. To help educate the public and the supply chain on the impact of carbon pricing on the trucking industry, CTA has prepared a document and infographic.