Conservative Leader Pierre Poilievre says his government would completely remove the carbon tax for both consumers and industrial emitters, adding that Prime Minister Mark Carney’s recently signed directive does not go far enough.
“A common sense, Canada-first Conservative government will repeal the entire carbon tax, including the federal backstop that requires provinces to impose industrial taxes,” Poilievre said during a March 17 press conference in L’Orignal, Ont.
Poilievre said his government would use “technology, not taxes” to reduce emissions, and also provide tax credits for this purpose, rewarding industries that lower emissions.
Carney issued a directive shortly after becoming prime minister to reduce the consumer carbon tax rate to zero, saying it had become too “divisive.” The directive also added that the Canada Carbon Rebate cheques would still be delivered to Canadians before the end of April.
During the Liberal leadership campaign, Carney pledged to replace the consumer carbon tax with a system that rewarded Canadians for making lower-emission choices like buying electric vehicles and energy-efficient appliances. Carney said he would develop a new “consumer carbon credit market” and make “big polluters pay” for this system.
“The world is shifting, and Canada needs to be ready. The consumer carbon tax was too divisive when we should be pulling together. That’s why I took action to cancel it on day one,” Carney said on March 15.
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Poilievre noted that the carbon tax legislation is still in place, and that the publicized image of Carney signing a paper to remove the tax amounted to a “fake executive order” to “hide” the carbon tax. Parliament was prorogued by Justin Trudeau on Jan. 6 on the day he announced he was planning to step down, which prevents legislative changes from being debated in the House. The parliamentary session will resume on March 24.
Poilievre has accused Carney of proposing a rebranded “shadow carbon tax” that would be brought back after the next federal election “bigger than ever.” The Conservative leader also said that the carbon tax still applies to industries.
He said Carney’s plan would be a “disaster” for Canadians working in lumber mills, steel factories, and aluminum plants, as the new system combined with United States’ tariffs would lead to higher costs for Canadians and more jobs being lost.
The Liberal party said in a March 17 post on X that Carney cancelled the consumer carbon tax because his government is focused on “real solutions” to give money back to Canadians, while fighting climate change and building a stronger economy.
“Pierre Poilievre has no plan for the environment or the economy – just slogans,” the party added.
The Liberals’ carbon tax scheme came into effect in 2019 at $20 per tonne, and was set to gradually increase until reaching $170 per tonne in 2030. The policy proved to be controversial, with a majority of Canadians eventually being opposed to it, and the Conservatives using “axe the tax” as their main slogan while surging in the polls.
The controversy ramped up in 2023 as the federal government allowed a carveout on the tax on home heating oil, which is primarily used in Atlantic provinces, but didn’t give an exemption on other types of heating, including natural gas that is used in Western provinces. This lead Saskatchewan to say it would stop collecting the tax on home heating in defiance of the federal government.
