National

Over 60 unions, civil society organizations, Indigenous and faith groups have signed an open letter to the Prime Minister calling for an excess profits tax on oil and gas companies.

Polling released last week shows that two thirds of Canadians support taxing the windfall profits of oil and gas corporations, with the revenues used to address the cost of living crisis and lower our energy bills.

The scale of corporate profiteering by the fossil industry while people across Canada contend with high fuel bills is staggering: oil companies are set to make $10 million per hour based on conservative estimates. A 75% tax on excess profits 120% above pre-crisis profit levels would generate more than $40 billion that could be given back to Canadians.

The writing’s on the wall: an excess profits tax is a feasible, practical, and popular solution.

Read the open letter: https://350.org/ept/

What’s Next?

As we prepare for our September lobbying day, ORCIE is working on the development of a proposal urging members of the Standing Committee on Environment and Sustainable Development to study the creation of an excess profits tax.

An industrial carbon pricing system is a market-based policy that puts a direct price on greenhouse gas emissions from industry, creating financial incentives for companies to reduce their carbon footprint. It is one of the most effective ways to reduce emissions by making pollution expensive and by allowing businesses the flexibility to find the most cost-effective way to reduce emissions. By making use of the market, it sends a powerful price signal that encourages companies to invest in cleaner technologies, improve energy efficiency, reduce dependence on fossil fuels, and develop new processes that generate fewer emissions. It also generates revenue that can be reinvested in climate solutions or returned to citizens, making it politically viable.

ORCIE contributed to the government of Canada review of its Output-Based Pricing System (OBPS) regulations by submitting a letter to Minister Julie Dabrusin outlining recommendations to strengthen Canada’s carbon pricing framework. The submission comes at a pivotal moment when Canada’s climate action efforts must address the intertwined crises of climate change, biodiversity loss, and social marginalization. For example, one essential piece of these regulations is the need for increased transparency.

‘The current transparency requirements in the OBPS framework are a challenge for Canadians who want to understand how we are using carbon pricing revenues and whether they benefit the common good. Increasing transparency by including detailed information on provincial systems and comparisons to benchmarks in annual carbon pricing reports will go a long way to helping the public understand the actual emission reductions achieved and how they compare to climate science requirements. This aligns with the Supreme Court’s recognition that climate change constitutes a matter of national concern requiring coordinated action.’

In the letter ORCIE offers feedback and practical measures so that Canada can create a carbon pricing system that drives genuine emissions reductions while building the public trust and political consensus necessary to meet the scale and urgency of the climate crisis.

For more information visit Canadian Climate Institute for their fact sheet How industrial carbon pricing reduces emissions at minimal cost and additional analysis.

In February, ORCIE signed onto the West Coast Environmental Law (WCEL) statement, joining allied environmental and Indigenous rights organizations. The open statement— Civil Society Organizations Oppose Northwest Coast Oil Pipeline and Tankers— raises concerns about proposed oil pipeline and tanker expansion along the Northwest Coast, emphasizing the risks to marine ecosystems, Indigenous rights, and Canada’s climate commitments.It also highlights the need to strengthen industrial carbon pricing, while underscoring that improved pricing mechanisms cannot offset the additional pollution that would result from expanding oil and gas production. (Since ORCIE has endorsed it on behalf of its members, no further action or signatures are required from individual congregations.)

As a follow up to this work, ORCIE will continue closely tracking federal regulatory processes related to pipeline approvals. We will be contributing to the House of Commons Environment Committee’s study on Industrial Carbon Pricing, after receiving an invitation from multiple MPs.