A new bill proposed by the Quebec government to streamline operations and enhance state efficiency is sparking worries about the province’s dedication to combatting climate change. The bill, known as Bill 7, put forth by the newly appointed treasury board president, would permit excess funds from Quebec’s Green Fund to be redirected to unrelated government initiatives.
Established nearly two decades ago and recently renamed the Fonds d’électrification et de changements climatiques (FECC) in 2020, the Green Fund is explicitly allocated to combating climate change and currently holds a surplus of $1.8 billion. However, the omnibus bill introduced by France-Élaine Duranceau would empower the finance minister to utilize the surplus for debt repayment, road network investments, or even gasoline tax reduction, raising concerns that the Coalition Avenir Québec government may be veering off track from its climate objectives.
In response to the bill, Ruba Ghazal, co-spokesperson for Québec Solidaire, criticized the diversion of Green Fund resources during a climate crisis as “entirely irresponsible,” emphasizing the necessity of these funds for Quebec’s transition to a greener economy. Conversely, Quebec Environment Minister Bernard Drainville hinted at utilizing a portion of carbon tax revenues for citizen-centric measures, triggering further apprehension among environmental advocates.
The Canadian Federation of Independent Business (CFIB), representing small and medium-sized enterprises, supports the prospective shift in Green Fund surplus usage. The fund is primarily funded through the carbon market, leading to elevated gas prices due to emissions allowances’ procurement by fuel distributors. The CFIB highlighted the challenge faced by small Quebec businesses heavily reliant on fuel for daily operations, especially in light of the federal carbon tax abolition, leaving Quebec as the sole province with a carbon price mechanism.
Steven Gordon, an economics professor at Université Laval, criticized the potential initiative to reduce fossil fuel prices using the Green Fund surplus as counterproductive to efforts to discourage consumption and mitigate greenhouse gas emissions. The suggestion was deemed contradictory to climate change mitigation strategies.
Additionally, environmental groups expressed discontent with the government’s approach, questioning the surplus accumulation while emission reduction goals remain unmet. The transfer of the surplus to the Generations Fund for debt repayment was defended by the finance minister’s office, underscoring the objective of intergenerational equity.
Despite the criticism, there is hope following a recent report by Quebec’s independent advisory committee on climate change, urging the government to uphold or enhance its target of reducing greenhouse gas emissions. The report outlines a roadmap towards complete decarbonization by 2045 through the adoption of carbon capture technologies and sector-specific emission reduction strategies.
While challenges persist, the feasibility of achieving these climate targets lies in the government’s commitment to implementing the recommended measures. The upcoming unveiling of Quebec’s new climate targets by Environment Minister Bernard Drainville is eagerly awaited as the province navigates its environmental policy direction.