The latest report in the Canadian Chamber of Commerce’s Regulate Smarter series shines a light on the “pancaking” of climate-related costs and regulations. These added costs are almost exclusively put on the shoulders of business owners, particularly the country’s small- and medium-sized businesses.
This regulatory report outlines the cumulative costs of climate policy in Canada. Climate change is a defining issue of our times, and Canadian businesses have a role in combatting it. However, it is imperative that we create climate policy that allows Canada to pursue effective greenhouse gas (GHG) emissions reductions at the lowest possible cost to Canadians and Canadian businesses. This report brings into focus the higher costs for businesses that may occur from an inefficient interaction of the Output-Based Pricing System (OBPS) and the Clean Fuel Standard (CFS). If not addressed, the layering or pancaking of different carbon prices and increased cost of compliance from jurisdictional overlaps will needlessly raise the cost of compliance for Canadian businesses.
Read the report here.