Tories to Introduce Motion Calling on Feds to Scrap New Fuel Regulations

Conservative Leader Pierre Poilievre speaks at a news conference in the foyer of the House of Commons on Parliament Hill in Ottawa, on Mar. 12, 2023. (The Canadian Press/Justin Tang)

The federal Conservatives are set to introduce a motion on June 1 calling on the Liberal government to scrap its incoming Clean Fuel Regulations (CFR), which are set to take effect at the beginning of July.

The non-binding motion, sponsored by Conservative Leader Pierre Poilievre, says the CFR combined with the carbon tax “will mean that Canadians pay an extra 61 cents for each litre of gas.”

Poilieve’s motion asks the House of Commons to “recognize the failure of carbon tax one and call on the government to immediately cancel carbon tax two [the CFR].”

Scheduled to take effect July 1, the CFR sets new standards for primary fuel suppliers—producers and importers—requiring them to reduce the carbon intensity of the gasoline and diesel they produce and sell in Canada.

The standards will increase every year until they reach full stringency in 2030, gradually lowering the carbon intensity limit of all gasoline and diesel used in Canada over time.

The proposed regulations have become a contentious point of debate across government since mid-May.

In his motion, Poilievre pointed to a May 18 report by Parliamentary Budget Officer (PBO) Yves Giroux.

The PBO’s report said Environment and Climate Change Canada (ECCC) estimates that the CFR will increase the price of gas and diesel in 2030, when the standards reach full stringency, “by up to 17 cents per litre and 16 cents per litre respectively.”

ECCC also estimates that the CFR will decrease real GDP in Canada by up to 0.3 percent, or up to $9 billion, in 2030, Giroux’s report said.

Criticism and Debate

However, federal Environment Minister Steven Guilbeault took issue with Giroux’s analysis, calling it “unbalanced” and “incomplete.”

“It is a very partial analysis,” Guilbeault told reporters on May 19, adding, “I disagree with the fact that it’s a very incomplete analysis.”

Giroux responded to the environment minister’s criticism several days later, saying that his office stood by its “unbiased, balanced analysis” which was based on “the government’s own data.”

“What we produce is not exactly consistent with the government’s narrative,” Giroux told The Epoch Times on May 23. “They want to proceed with Clean Fuel Regulations and their climate agenda, generally speaking, and they don’t necessarily want people to focus on the cost. They'd like people to focus more on the benefits.”

Less than a week later, the premiers of Canada’s Atlantic provinces issued a joint statement calling on the federal government to delay implementing the CFR, saying the new regulations will lead to higher price inflation than already exists.

“These increases will further add to inflationary pressures that will increase the costs of other goods imported to the region,” the premiers said in a joint statement on May 25.

Guilbeault has defended the incoming fuel regulations by saying that they are “designed to spur innovations of clean technologies and expand the use of less polluting fuels throughout the economy.”

Noé Chartier contributed to this report.