Dr. Stephen Hill is the director of the Trent School of Environment and co-editor of the recently published book, Sustainable Energy Transitions in Canada. Professor Hill has been awarded the Symons Award for Excellence in Teaching, the CMHC Award for Excellence in Education, and Trent's Community Leadership Award.
For years, economists have championed carbon pricing as the most efficient way to curb emissions, arguing that taxing emissions creates market-driven incentives for businesses and consumers to shift toward cleaner energy. However, as Dr. Stephen Hill, director of the Trent School of the Environment, points out, political realities are making this approach increasingly unworkable.
With political winds shifting away from a carbon tax in Canada, there are other solutions to support a green energy transition
"Public opposition to carbon pricing, fueled by political campaigns and rising costs of living, has made it a tough sell," says Professor Hill. "What was once a growing consensus across party lines has now been turned into a wedge issue by politicians like Pierre Poilievre. Other politicians are now opposing the carbon tax, including Liberal leadership candidates Mark Carney and Chrystia Freeland, who have both been proponents of the policy. There's not a lot of value in having a carbon tax election."
So, if carbon pricing for consumers is no longer politically acceptable, what's the alternative? Prof. Hill highlights the shift toward green industrial policy and direct investment incentives.
"Instead of taxing emissions, governments can support clean technology with subsidies and investment tax credits for low-carbon industries, like renewable energy, heat pumps, batteries, electric vehicles (EVs), and even carbon capture and storage," said Prof. Hill.
"We need to make strategic investments in the future clean economy to ensure Canada can stay competitive as the world moves to a low-carbon future. Given the pace of change - partly being driven by Chinese investment in low-carbon technology - we need to position Canada to be a player and not fall behind. These investments are as much about economic and industrial competitiveness as they are about reducing greenhouse gases."
Prof. Hill says strategic investments, government-backed incentives, and bold industrial strategies can drive a low-carbon transition and shouldn't be held back by divisive politics of a carbon tax.
"These policies are as much about recognizing other countries are moving fast to build a cleantech future, and if we're not doing the same, then we're going to get left behind."
