Yay some conservative news I can get behind... well sort of.

So, the Conservative Party of Canada finally released something of a plan on climate change. And there are actually some things to be praised and my mind is a little blown.

Don't get me wrong it still fails comically in a number of ways. But, in other ways it does improve on the Liberals plan.

And for me having anything nice to say about the Conservative Party is a good thing because it makes me feel slightly less like a totally biased jerk.

So, what is it that I like? Well, I like that there is an emphasis on putting the taxed money toward climate friendly purchases.

Unfortunately, that is about where my appreciation of the plan ends.

Starting at $20/ton means starting at half the current rate. And capping at $50/ton likely means the plan is doomed. Also, handing the money back to Canadians is an inefficient way of driving home the impact and boosting the green energy sector. And, that latter comment also applies to the current Liberals scheme.

Though, I would also argue that the Liberals approach was really not originally intended to be applied. It was meant as a motivator to have the Provinces adopt their own strategy. Hence the blunt, unrefined approach. But, it is also fair to point out that for various reasons (many, simply political) it hasn't worked out that way and it may be time for the Liberal government to adapt their plan. 

In regards to the decrease in the tax, I will agree, if most or all of the taxed money is properly redistributed to green initiatives then we may be able to reach emissions goals with less investment. The idea here is that with enough investment green solutions may finally be able to capture enough market share to take off and become competitive and then even with modest taxation consumers will naturally gravitate toward the greener solutions.

But, this isn't going to happen fast enough relying on consumers to do it. This is because in a lot of sectors there simply isn't a consumer facing solution or they are obscure or far too expensive today. This really needs high level, targeted investment. And the government is really better suited to that than individuals are. 

In fact, a savings account fuelled by carbon tax dollars is likely to accelerate the climate crisis. How? Even if spending from this account is regulated it sounds like it would basically be allowing individuals to spend their money on the sorts of things green energy programs have targeted the past. Like more efficient appliances or home upgrades. 

And the problem here is the same as with those programs; they give incentive to people to replace things which may not need replacing. This will generate a ton of waste and will likely cause more climate related waste and emissions. And putting the money into an individuals account will mean that they will feel the urge to use that money more than they would have if it was handed out the way it was historically. So, in some ways it is worse.

Another problem with the plan is a failure to provide assistance for the most vulnerable. Much as you may deride the current carbon tax, the lowest income households actually get a boost via the rebate checks. Especially if they can curb their spending on taxed goods. 

My final problem with the Conservative plan is that it still says they plan to repeal the Liberal Carbon Tax. Anything positioned as repealing the current carbon pricing plan is an insult to Canadians.  The Liberal government was elected with a majority while this was a key part of their platform. And the Conservatives lost an election where one of their key focuses was repealing it already. 

The people have spoken. Move on. I have absolutely no issue with tweaking and adjusting it. But, any plan positioned as repealing this legislation completely disrespects the majority of Canadians who voted concisely in consecutive elections to first bring about this change and then keep it in place.

My personal recommendation would be to keep the government backstop amounts as they are and are planned. Codify into law (if not already) that none of the money goes to the government, thus eliminating the concerns of the government abusing the income. Perhaps by establishing an independent 3rd party to manage it. 

And lastly change how the money is allocated. I would say something like retaining the rebate checks to the lowest income Canadians, targeting those which could be covered by 30% of the funds. A further 20% to go into infrastructure, education and health and the remaining half to invest in green energy by giving grants and low interest loans directly to climate focused initiatives and businesses.

This plan would leave the Provinces free to implement their own solutions. It would retain the best of the existing plan helping out those who are least likely to be able to absorb the cost stay afloat financially and investing in essential services. But it would also take the one good element from the Conservative plan which I think IS critical to addressing climate change, which is investing in green energy but actually doing it in a way which makes sense. Which is to say, leveraging the combined funds accumulated by the carbon pricing scheme and distributing in a more efficient manner.