Federal Climate Policies May Have ‘Disproportionate’ Impact on Low-Income Canadians: Report

An oil pump jack operates in a field near Calgary, in a file photo. (Reuters/Todd Korol/File Photo)

Some of the federal government’s climate targets and policies may have a “disproportionate impact” on low-income Canadians because they could lead to an increase in vehicle and fuel costs, says federal research.

“Existing and future mitigation measures, either individually or collectively, may have different social, economic or other impacts on various population groups,” says a report published by Environment and Climate Change Canada on Feb. 17 and first reported by Blacklock’s Reporter.

“Some measures may have a disproportionate impact on lower-income Canadians, if they lead to increased energy or vehicle costs. Similarly, large-scale infrastructure projects such as transmission lines may impact Indigenous Rights,” writes the department.

Titled “Evaluation of the Core Climate Change Mitigation Program,” the report says that a “sizeable workforce” will likely need to transition out of Canada’s oil and gas sector in the coming years. It also noted that indigenous communities “may be at risk if the social impact is not considered or embedded in policy.”

“Given the scope and pace of change, understanding the impact on population groups and regions will be important,” writes the department.

The report also says that despite over $494 million previously being budgeted to cover the estimated costs of introducing federal climate regulations over a 12-year period, the environment department does not have any data on possible unintended consequences of its climate program.

“There is no evidence that beneficial and adverse economic and social impacts of mitigation measures are being measured or estimated for population groups across relevant identity factors,” it says.

‘Just Transition’

The Liberal government recently released its “just transition” plan, which outlines proposed steps toward moving Canada’s oil and gas workers into green-energy jobs.

The “Sustainable Jobs Plan,“ released on Feb. 17, says that between now and 2050 there will be a ”continuing but declining demand for oil and gas in conventional combustion applications.”

The government’s current climate plan set a goal for reaching national “net-zero” greenhouse gas emissions by 2050.

The government also announced in December 2022 that all new vehicle sales must be emissions-free by 2035.

The Sustainable Jobs Plan says that Ottawa intends to introduce legislation this year that will outline “a framework for accountability, engagement and transparency” in the planned workers’ transition.

A memo prepared for Natural Resources Minister Jonathan Wilkinson in June 2022 said that over 2.7 million Canadian workers will face “significant” job disruptions in sectors that will be affected by the proposed “just transition” legislation.

Wilkinson has said the transition plan will create job growth.

“I do not believe that the challenge we are going to face is that there are workers who are displaced that will not find other good-paying jobs,” Wilkinson told CBC News in early January.

“I am actually quite worried that there are so many opportunities … we will not have enough workers to fill the jobs.”

Isaac Teo and Tara MacIsaac contributed to this report.