Ensuring that Budget 2021 Reflects the True Costs of Climate Change

Federal budgets to date have failed to consider, or have underestimated, the cost implications of climate change and failed to examine how the government should pay for these increased costs.

For example, Budget 2019 includes $130 million per year for the Disaster Financial Assistance Arrangements, far less than the Parliamentary Budget Officer’s estimate that this program will cost $902 million per year from 2016-2020.

In addition to estimating current and future budgetary needs associated with climate change, Canada must enable transparent decision-making regarding keeping these costs manageable,  including through investments in GHG mitigation, climate adaptation, and cost-recovery from corporations and individuals that benefit financially from fossil fuel production and use.

Recommended Investment:
$2 million over two years
to ECCC to:

•   Work with each federal department to identify and quantify the budgetary implications of Canada’s Changing Climate, to ensure that those implications are incorporated into, and clearly identified in, the federal budget, starting with Budget 2021; and

•   Explore opportunities to recover climate costs from polluters

Andrew Gage – agage@wcel.org