A proposal by Canada’s government to introduce a carbon tax in the drive to meet its commitment to curb greenhouse gas emissions could cause problems for the country’s fishing industry.
The proposal has become controversial as a briefing paper prepared by the Department of Fisheries and Oceans obtained by The National Post warned that Canada’s fishing industry could see its competitiveness “degrade relative to other nations.”
According to the DFO analysis, the industry would need to absorb annual fuel cost increases of 2.1 percent or CAD 5.2 million (USD 4 million, EUR 3.4 million) under a carbon price that increases by CAD 10 to CAD 50 (USD 7.70 to 38.48, EUR 6.53 to 32.66) per metric ton in 2022. It said commercial fishing would be hardest hit, since fuel costs amount to more than nine percent of production costs.
While British Columbia has had a carbon tax in place for over a decade and the industry was able to absorb the expense, Ottawa’s concern centers around the short-term initial cost imbalance created by the slower adoption of emissions-cutting measures by the U.S., Russia, and Southeast Asian fisheries.
Aquaculture and seafood process sectors would be less hard-hit since their fuel costs average 1.6 and 0.8 percent of total costs. Because of this, Tom Smith, executive director of the Nova Scotia Sea Farmers Association, told SeafoodSource he’s unconcerned about the tax.
“[It’s] not on my radar,” he said.
Geoff Irvine, executive director of the Lobster Council of Canada, said the proposal could be a problem for his members.
“We have talked about the carbon footprint of the seafood sector for some time with many companies offering alternatives (like electric fishing boats, alternative distribution methods, etc.) which are actively tested by the lobster sector. So yes, it’s definitely on our radar,” Irvine said in an email to SeafoodSource.
While the fisheries sector has discussed and tested various carbon-saving ideas, Irvine not aware of specific measures and devices fishermen have yet implemented.
Fisheries Council of Canada President Paul Lansbergen said how the commercial fisheries sector stays competitive in light of government action will be an “ongoing discussion” in the industry
“Climate change is on our radar and it is broader than the carbon tax,” he said. “The sector is concerned about how Canada’s fish resources will continue to be impacted by climate change. For example, ocean water temperatures are changing and that affects various fish species and the food chain, which can then impact other fish species.”
Lansbergen said the industry need to find a new approach to doing its part to tackle climate change.
“We need to think about adaptation – what do we need to change in terms of our practices, in terms of our practices, technology, and perhaps the rules by which the sector operates,” he said. “In terms of climate change mitigation, it is important that the global community do its best to minimize the extent we experience climate change. We might not like the implications, but Canada has to do its part. Different sectors are affected differently, based on their energy-use intensities, and their exposure to international competition.”
