A new Quebec government bill aimed at cutting bureaucracy and making government more efficient is raising concerns about the province's commitment to combating climate change.
Under Bill 7, proposed last week by the new chairman of Quebec's Treasury Board, surpluses from the province's Green Fund would be allowed to be redirected to other unrelated government programs.
Created almost 20 years ago, the Green Fund, renamed Electrification and Climate Change Fund (FECC) in 2020 is described on the government's website as being “fully dedicated to combating climate change” and currently has a surplus of $1.8 billion.
However, France-Hélène Duranceau's omnibus bill would, among other things, give the finance minister the power to use the fund's surplus to pay down Quebec's significant debt, finance investments in the road network or even reduce the gas tax.
The move has raised concerns that the Coalition Avenir Québec government is moving away from its climate goals.
Reacting to the bill, Québec Solidaire spokesman Ruba Ghazal said diverting money from the Green Fund amid the climate crisis was “completely irresponsible” and that the money is needed for Quebec's transition to a green economy.
Meanwhile, Quebec Environment Minister Bernard Drainville has done nothing to allay those concerns.
“What we are now looking at is using part of the revenue associated with the carbon tax, that is, the carbon market, for measures to help citizens,” he told reporters.
Rising gas prices hurt small businesses
That would be welcomed by the Canadian Federation of Independent Business, a non-profit group that advocates for small and medium-sized businesses.
Currently, the province's Green Fund is primarily funded through the carbon market, a cap-and-trade system that sets a price on greenhouse gas emissions.
This system results in higher gas prices because fuel distributors must buy emissions credits to cover the carbon emissions of the fuel they sell, and those costs are then passed on to consumers at the pump.
The province recently introduced a bill that would give the government the power to use Quebec's Green Fund surplus as it sees fit. The fund is designed to help the government combat climate change and currently has a surplus of about $1.8 billion.
CFIB says IIn 2025, the gas pump tax will increase from seven to 25 cents per liter, and by 2030 it could rise to 35 cents.
This is making it difficult for Quebec small businesses that rely on fuel to remain profitable, according to the CFIB. — especially after Ottawa scrapped its federal consumer carbon tax in March, leaving Quebec as the only province in the country that still has a carbon price.
“We are asking them to either abandon the carbon exchange entirely or ensure that the money is returned to Quebecers and small businesses through direct, transparent rebates,” the CFIB said in a press release.
Stephen Gordon, professor of economics at Laval University in Quebec, said a potential use of the fund to lower fossil fuel prices would be doomed to fail.
“The whole point of the project is to make fossil fuels more expensive,” he said, adding that the higher price is an incentive to reduce consumption.
Using the Green Fund would be akin to subsidizing gasoline, which Gordon said, “goes against any measures to reduce greenhouse gas emissions or any action to combat climate change.”
Asked whether the current Green Fund surplus could be used for initiatives such as gas tax cuts, Duranceau said the finance minister would have to decide how and where to spend the money.
Plan 'ridiculous', rights group says
In an email to CBC News, the finance minister's office said the entire $1.8 million surplus will be transferred to the Generations Fund, which is dedicated solely to paying down Quebec's debt.
This will help “reduce gross debt and promote intergenerational equality,” the statement said.
He goes on to add that any additional surplus could be transferred to either the Generations Fund or the Fund for Overland Transport (FORT), but the department “does not currently expect any annual surplus” in the Green Fund.
“If we move to FORT, our first priority will be to reduce debt before increasing funding for a priority like public transport.”
However, environmental groups are critical of the government's approach.
Blaise Remillard, Montreal Regional Environmental Councilsaid the fact that the government has such surpluses to begin with and is not on track to meet its greenhouse gas emissions reduction targets this is already a cause for concern.
“Now that they want to take that money and use it for other purposes… that's really unacceptable,” he said.
Charles-Edouard Tétou, climate and policy analyst at Equiterre, agrees.
“We really think it's ridiculous to have a government that is obsessed with intergenerational equality but doesn't take action on climate change seriously,” he said.
“How can we strive to advance policies that benefit future generations if we don’t have a climate to leave them?”
Quebec needs to strengthen climate targets
Criticizing the government's current trajectory, Tetu expressed hope following a report this week from Quebec's independent advisory committee on climate change.
The report says the government should maintain or increase its target to reduce Greenhouse gas emissions by 2030 will be 37.5% below 1990 levels, even though the United States will roll back environmental regulations.
The report also outlines a path to full decarbonization by 2045. The plan includes introducing more carbon capture technologies, carbon budgeting and sector-specific roadmaps to reduce emissions.
Premier Francois Legault says Quebecers can't be the only ones in North America making significant efforts to combat climate change. He is asking his environment minister to reconsider the province's green economy plan amid growing economic pressure.
Tetu says the goals are achievable if Quebec achieves them.
The Quebec government has asked for the committee's recommendations when revising the province's climate goals.
In September, Premier Francois Legault said he might delay implementation of the province's environmental goals, saying Quebecers cannot be the only ones in North America making significant efforts to combat climate change.
Quebec Environment Minister Bernard Drainville is expected to unveil the province's new climate targets soon.
