The Canadian Government is providing carbon pricing relief for greenhouse growers to ensure they can remain competitive in a global marketplace and avoid sharp price rises.

The targeted relief for commercial greenhouse growers was announced to limit the impact of the Greenhouse Gas Pollution Pricing Act (GGPPA).

There will be a partial relief on the carbon tax applied to the natural gas and propane, which is used to grow plants in a greenhouse.

The Canadian Horticultural Council (CHC) and the Canadian Produce Marketing Association (CPMA) welcomed the initiative, saying the relief would help to level the playing field for greenhouse growers domestically while at the same time keeping food affordable.

“I’ve seen first hand the results that this kind of protection has afforded growers in British Columbia. I have worked closely with the British Columbia government to develop a carbon pricing relief program that supports this province’s greenhouse farmers”, said Linda Delli Santi, chair of the CHC's Greenhouse Vegetable Committee.

“Today I am pleased to see the federal government take steps to ensure our producers across Canada can continue to grow healthy fruits and vegetables in Canada for Canadians.”

Rebecca Lee, the CHC's executive director, added that they had been long advocating for relief for greenhouse farmers.

“This federal announcement is a big step towards a more predictable and stable business investment climate and reduce administrative burden. We look forward to seeing how the exemption certificates will be rolled out," she said.

Meanwhile, CPMA president Ron Lemaire said: "While more work remains to be done, we look forward to future engagement with the government on the carbon pricing scheme and our industry’s competitiveness."

The greenhouse vegetable sector contributed more than CAD$1.4 billion (US$1 billion) in farm cash receipts to the Canadian economy with exports totaling more than CAD$964 million (US$740 million) in 2017.

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