A new Quebec government bill aimed at reducing bureaucracy and increasing state efficiency is raising concerns about the province’s commitment to fighting climate change.
Under Bill 7, the proposed legislation introduced last week by Quebec’s new treasury board president, surpluses from the province’s Green Fund will be allowed to be diverted to other unrelated government programs.
Created almost 20 years ago, the Green Fund, renamed the Fonds d’électrification et de changements climatiques (FECC) in 2020, is described on the government’s website as being “entirely dedicated to the fight against climate change” and currently has a surplus of $1.8 billion.
However, France-Élaine Duranceau’s omnibus bill would, among other things, give the finance minister the right to use the fund’s surplus to pay off Quebec’s sizeable debt, finance investments in the road network or even reduce the tax on gasoline.
The move has stoked fears the Coalition Avenir Québec government is moving away from its climate goals.
Reacting to the bill, Québec Solidaire co-spokesperson Ruba Ghazal said diverting money away from the Green Fund amid a climate crisis was “totally irresponsible,” and that the money is needed for Quebec’s green transition.
Meanwhile, Quebec Environment Minister Bernard Drainville did nothing to allay those fears.
“What we are currently considering is using a portion of the revenues related to the carbon tax, therefore to the carbon market, for measures to help citizens,” he told reporters.
Higher gasoline prices hurting smaller businesses
That’s something the Canadian Federation of Independent Business, a non-profit group advocating for the interests of small and medium-sized businesses, would welcome.
As it stands, the province’s Green Fund is mainly financed through the carbon market — a cap-and-trade system that places a price on greenhouse gas emissions.
The system leads to higher gas prices because fuel distributors must purchase emissions allowances to cover the carbon pollution from the fuels they sell, and this cost is then passed on to consumers at the pump.
The province recently introduced a bill that would give the government the power to use Quebec’s Green Fund surplus for whatever it sees fit. The fund is meant to help the government combat climate change and currently has a surplus of about $1.8 billion.
The CFIB says in 2025, the tax has added between seven to 25 cents per litre at the gas pump, and by 2030, it could climb as high as 35 cents.
That makes it difficult for small Quebec businesses that rely on fuel daily to remain profitable, the CFIB says — especially since Ottawa axed the federal consumer carbon tax in March, leaving Quebec as the sole province in the country that still has a price on carbon.
“We’re asking them to either get rid of the carbon exchange entirely or make sure the money is returned to Quebecers and small businesses through direct, transparent rebates,” the CFIB said in a news release.
Steven Gordon, a professor of economics at Université Laval in Quebec City, said potentially using the fund to reduce the price of fossil fuels would be self-defeating.
“The whole point of the project is to make sure that fossil fuels are more expensive,” he said, adding the higher price provides an incentive to reduce consumption.
Using the Green Fund would be akin to subsidizing gasoline which, Gordon said, “goes exactly against any kind of measure to reduce the greenhouse gas emissions or to do anything about climate change.”
When pressed on whether the current surplus in the Green Fund could be used for initiatives like reducing the tax on gas, Duranceau said it would be up to the finance minister to decide how and where the money is spent.
Plan is ‘laughable,’ says advocacy group
In an email to CBC News, the finance minister’s office said the entirety of the $1.8-million surplus would be transferred to the Generations Funds which is dedicated exclusively to repaying Quebec’s debt.
This will help “reduce the gross debt and contribute to intergenerational equity,” the statement reads.
It goes on to add that any additional surpluses could be transferred to either the Generations Fund or the Ground Transportation Fund (FORT), but that the ministry “currently doesn’t anticipate any annual surpluses” in the Green Fund.
“In the event of a transfer to FORT, our first priority would be to reduce its debt before increasing funding for a priority such as public transit.”
Environmental groups, however, are critical of the government’s approach.
Blaise Rémillard, of the Conseil régional de l’environnement de Montréal, said the fact the government has such surpluses to begin with and isn’t on track to meet its greenhouse gas emission reduction targets is already cause for concern.
“Now that they want to take that money and use it for other things … it’s really unacceptable,” he said.
Charles-Édouard Têtu, a climate and policy analyst at Equiterre, agrees.
“We do find it’s kind of laughable to have a government who is hell-bent on intergenerational equity but doesn’t take action for climate change seriously,” he said.
“How can we aim to put forward a policy that aims towards future generations if we don’t have a climate that we can leave them?”
Quebec needs to strengthen climate targets
While critical of the government’s current trajectory, Têtu expressed hope following a report this week by Quebec’s independent advisory committee on climate change.
The report says the government should keep or increase its target of reducing greenhouse gas emissions to 37.5 per cent below 1990 levels by 2030, despite the United States rolling back on environmental regulations.
The report also lays out a path toward complete decarbonization by 2045. The plan includes adopting more carbon capture technologies, carbon budgeting and sector-specific roadmaps to reduce emissions.
Premier François Legault says Quebecers can’t be the only ones in North America making significant efforts to fight climate change. He’s asking his environment minister to review the province’s green economy plan amid growing economic pressures.
Têtu says the goals are attainable, if Quebec follows through on them.
The Quebec government requested the committee’s recommendations as it revises the province’s climate targets.
In September, Premier François Legault indicated he might be putting the province’s environmental goals on hold, saying Quebecers can’t be the only ones in North America making significant efforts to fight climate change.
Quebec Environment Minister Bernard Drainville is expected to unveil the province’s new climate targets shortly.
