A rising carbon price is the most cost-effective way to cut greenhouse gas emissions. But on its own, it’s not enough. That’s why other complementary policies are needed. Determining what those complementary policies are, is the focus of a new report: Supporting Carbon Pricing: How to identify policies that genuinely complement an economy-side carbon price.
The report, released on June 6, is from Canada’s Ecofiscal Commission — a Metcalf grantee. It identifies three kinds of complementary and effective policies that it calls gap-fillers, signal-boosters, and benefit-expanders. The report also presents six detailed recommendations for how governments can develop complementary policies to support carbon pricing.
Clare Demerse, Federal Policy Advisor with Clean Energy Canada — another Metcalf grantee, welcomed the report but challenged its claim that electric vehicle subsidies should be phased out. Demerse argues that offering incentives to Canadians who buy zero-emission cars is, in fact, essential. “No question,” she states, “there are cheaper ways to reduce carbon pollution… But we also need to accelerate our transition to cleaner cars — in the long-term, to increase our success in cutting emissions, and also to take full advantage of our country’s strength in auto innovation and technology, as demand for these vehicles grows around the world.”
Supporting Carbon Pricing has received considerable media attention, including coverage in The Globe and Mail, CBC News, and Metro News. Chris Ragan, Chair of Canada’s Ecofiscal Commission, was interviewed about the report on CBC Power & Politics and Bloomberg.com.