Canada's carbon price increase officially took effect on April 1, 2024.
Inputs that matter: The federal carbon price between now and 2030 will have a significant impact on gasoline prices in Canada – these higher carbon taxes could make prices jump as much as 350%.
- The federal excise tax on beer and alcohol will rise by 2%, with a maximum cap of 2% through 2026.
- On average, expect food and consumer goods to see bumps of 0.5 to 2% across the country.
- Natural gas, propane, and other home operating fuels will increase the carbon price by 3 to 5% per cubic meter of natural gas.
The opportunity: The global renewable energy market size was USD$1 trillion in 2023. It is estimated to reach USD$2.5 trillion by 2032, growing at a CAGR of 9.47%.
- Asia-Pacific is the most significant global market shareholder and is anticipated to grow at a CAGR of 8.10% until 2032.
- North America is expected to grow at a CAGR of 8.79% over the same period.
Zoom in: "The federal carbon tax is applied in Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, PEI, Newfoundland and Labrador, Yukon and Nunavut. British Columbia and the Northwest Territories have their own (but similar) carbon charges for consumers, while Quebec uses a cap-and-trade system."
- According to the United Nations, fossil fuels, such as coal, oil, and gas, are the most significant contributor to global climate change, accounting for over 75% of global greenhouse gas (GHG) emissions and 90% of carbon dioxide emissions.
Between the lines: In August 1971, U.S. President Richard Nixon announced the suspension of the dollar's convertibility into gold, in effect creating the FOREX market.
- Similarly, the United Nations 2030 agenda created the Carbon market and renewed interest in nuclear power.
Follow the money: Goal 7 of the UN 2023 agenda declares:
- By 2030, ensure universal access to affordable, reliable, and modern energy services
- By 2030, increase substantially the share of renewable energy in the global energy mix
- By 2030, double the global rate of improvement in energy efficiency
- By 2030, enhance international cooperation to facilitate access to clean energy research and technology
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