Last updated on April 8, 2022
The current price on carbon emissions from fossil fuels is $50 per tonne of CO2e. The price will increase by $15 per tonne to $170 by 2030 [1].
The following table shows the impact of the carbon tax . The average fuel consumption of a car in Canada is 8.9 litres per 100 km . The average number of km driven per year is 15,200 km and burns 1,350 litres of gasoline . The average home in Canada uses 2,442 cubic metres of natural gas a year.
| Type | Gasoline (litre) |
Per Year | Natural Gas (cubic meter) |
Per Year |
|---|---|---|---|---|
| 2023 ($65/tonne) |
0.1431 | $192 | 0.1239 | $302 |
| 2024 ($80/tonne) |
0.1761 | $237 | 0.1525 | $372 |
| 2025 ($95/tonne) |
0.2091 | $282 | 0.1811 | $442 |
| 2026 ($110/tonne) |
0.2422 | $327 | 0.2097 | $512 |
| 2027 ($125/tonne) |
0.2752 | $371 | 0.2383 | $582 |
| 2028 ($140/tonne) |
0.3082 | $416 | 0.2669 | $652 |
| 2029 ($155/tonne) |
0.3412 | $460 | 0.2954 | $721 |
| 2030 $170/tonne) |
0.3743 | $505 | 0.3240 | $791 |
Note: Carbon pricing is not adjusted for inflation. If the average inflation remains at 2% for the next 8 years, $505 in 2030 is worth $430 in today’s dollars and $791 is worth $675.
References
[1] climateinstitute.ca/canadas-carbon-pricing-update/
[3] www.thinkinsure.ca/insurance-help-centre/average-km-per-year-canada.html