CTA calls for ‘fair and sensible’ approach to carbon pricing application

by Truck News

CTATORONTO, Ont. — The Canadian Trucking Alliance (CTA) Wednesday called on the federal government to take a “fair and sensible approach” to how carbon pricing applies to the trucking industry.

It also urged Ottawa to 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,” the alliance said.

CTA’s director of policy Lak Shoan added that the alliance 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,” Shoan said.

“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 liter 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), CTA said.

The carbon price is scheduled to rise to 8.05 cents per liter on April 1, 2020, 10.73 cents per liter in 2021, and 13.41 cents per liter in 2022.

Meanwhile, the Quebec Trucking Association (QTA) has raised an issue of double taxation on the Quebec industry as a result of its members facing both a federal and provincial carbon pricing system.

“The Quebec system (SPEDE) has been duly recognized by the federal government,” said CEO Marc Cadieux.

“Carriers having fueled in Quebec face double taxation when they travel to provinces subject to the federal carbon pricing system… This situation needs to be addressed.”

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