Asking industrial polluters to pay for their pollution does not drive-up food costs – contrary to misinformation being spread by some. Just like the consumer carbon price before it, the industrial price has a negligible impact on the cost of consumer goods, including food.
Multiple studies show that things like US tariffs and the low value of the Canadian dollar are the primary reasons for rising food costs in this country. Depending on who you trust, check out research by the Toronto Dominion Bank, the Bank of Canada, or Dalhousie University. The Canadian Climate Institute concludes that “[i]ndustrial carbon pricing has essentially no impact on the price of food and the agricultural sector.”
What IS contributing to rising food costs is changes in our climate. Canada’s 2026 Food Price Report underscores this, noting that:
“Climate change and weather events have become a growing concern for agricultural producers as they face more extreme and unpredictable conditions year after year. Since the supply chain starts with producers, the entire chain is highly sensitive to climate-related disruptions that impact agri-food output. Hot temperatures, droughts and wildfires damage crops and threaten agricultural land, and warmer winters can make crops and livestock more susceptible to pests and disease. When supply cannot meet demand, businesses need to pivot quickly or take the losses, neither of which is economically viable. These extra costs will show up in food prices on the shelves.”
In recent years, climate impacts are particularly notable. The same 2025 Food Price Report includes the following examples:
- 66% of agricultural land in Canada was experiencing moderate to extreme drought.
- Over 8.3 million hectares of land burned from wildfire activity.
- Rainfall activity was well below normal levels, impacting fruit and vegetable production. Prolonged drought also put significant upward pressure on beef prices, and livestock related costs more generally.
- Canada is indirectly impacted by global weather events. Prices for imports like coffee and tea, cocoa, strawberries, and oranges increased significantly due to weather-related challenges in other countries.
A robust, nation-wide industrial carbon pricing regime is a key part of the answer to rising food costs – not the problem. Politicians who claim otherwise (despite overwhelming evidence to the contrary) are betraying our kids, who are counting on us to leave to them safe and healthy food-producing ecosystems.