Fraser Institute Press Release: Federal government’s emissions reduction plan will cost Canadian workers $6,700 a year by 2030 while falling short of government’s emissions reduction target

VANCOUVER, British Columbia, July 18, 2024 (GLOBE NEWSWIRE) — The federal government’s plan to reduce greenhouse gas emissions will come at significant costs to Canadians while falling short of the government’s emissions reduction target, according to a new study released today by the Fraser Institute, an independent, nonpartisan Canadian public policy think tank.

“The government’s plan will seriously damage Canada’s economy and cost workers money and jobs,” said Ross McKitrick, a professor of economics at the University of Guelph, a senior fellow at the Fraser Institute and author Economic and greenhouse gas impacts of the federal emissions reduction plan through 2030.

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The government wants to reduce greenhouse gas (GHG) emissions by 40 percent below 2005 levels by 2030. To achieve this goal, the government has introduced a range of policies, including a federal carbon tax, clean fuel standards, and various other greenhouse gas regulations such as energy efficiency requirements for buildings, restrictions on farm fertilization, and mandates on electric vehicles.

The study found that these actions combined would cut greenhouse gas emissions by an estimated 57 per cent of the government’s 2030 emissions reduction target.

Most importantly, by 2030 these policies will:

reduce Canada’s GDP by 6.2 percent
cost $6,700 per year per employee
reduce employment in Canada by 164,000 jobs

“This poorly designed plan, which will exacerbate current trends of decline in productivity and income, will reduce emissions but at a cost many times greater than the government’s estimated benefits,” McKitrick said.

CONTACT WITH THE MEDIA:
Ross McKitrick, Senior Research Fellow, Fraser Institute

To arrange a media interview or for more information, please contact:
Bryn Weese, Communications Director, 604-688-0221 ext. 589,
[email protected]

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The Fraser Institute is an independent Canadian public policy research and education organization with offices in Vancouver, Calgary, Toronto and Montreal, and affiliated with a global network of think tanks in 87 countries. Its mission is to improve the lives of Canadians, their families and future generations by researching, measuring and broadly communicating the impact of government policy, entrepreneurship and choice on their well-being. To protect its independence, the Institute does not accept government grants or research contracts. Visit www.fraserinstitute.org

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