Canadian Propane Association Calls for Affordability and Fair Treatment in Face of Government Carbon Tax Increase

OTTAWA (March 28, 2024) — As the carbon tax is slated to increase on April 1, 2024, the Canadian Propane Association (CPA) is joining numerous other calls urging the government to take a practical and equitable approach to reducing emissions.

“Tackling climate change must not come at the expense of the health and well-being of Canadians who are struggling to make ends meet,” said CPA President and CEO Shannon Watt. “We are urging the government to take a balanced approach to energy policy. Reconsidering the increase or the carbon tax itself would be prudent, particularly at a time when affordability is a widespread concern and energy derived from conventional sources remains a vital necessity.”

Canada needs all forms of low-emission energy to ensure all Canadians have access to affordable and dependable energy in the drive to lower emissions.

Many parts of Canada do not have access to the grid or renewable energy such as hydroelectricity. They rely on conventional sources, like low-emission propane. Propane plays a crucial role in powering homes, businesses, and industries across Canada, particularly those in rural, remote and Indigenous communities, offering a cleaner-burning alternative to other traditional fuels.

Last fall, the federal government provided a respite from the carbon tax by implementing a three-year pause specifically for heating oil. Unlike heavier-emitting heating oil, propane was not exempt from the carbon tax, despite its lower emissions profile and its similar use as a rural fuel. Increasingly, people in rural communities are choosing propane over heating oil as they look for cleaner and dependable energy – they should be given a tax break, not punished with increased taxes.

“The government’s environmental policies should not penalize the hundreds of thousands of Canadians who rely on vital energy sources such as propane,” said Watt. “With high-interest rates, increased food prices, and soaring rental costs, energy affordability must remain a critical priority in any policy. Heating homes and businesses is not a choice. A realistic and fair approach is essential to achieving environmental objectives without disproportionately burdening consumers and industries reliant on conventional energy like propane.”

As the April 1 deadline approaches, holistic energy solutions that prioritize sustainability, affordability, and resilience are needed. It is essential to approach emission reduction strategies with consideration for all Canadians, regardless of where they live, rather than resorting to punitive measures.