Carney kills consumer carbon tax in first move as prime minister

Prime Minister Mark Carney wasted no time in making a significant change to government policy by removing the consumer carbon tax shortly after being sworn in. The move, which took effect on April 1, was made through an order-in-council issued by Carney’s cabinet.

In a statement to the press, Carney emphasized that while the removal of the carbon tax would provide relief to Canadians facing financial strain, it was just one part of a larger strategy to combat climate change and ensure the country’s economic competitiveness. The carbon pricing scheme, initially implemented by former Prime Minister Justin Trudeau in 2019, aimed to incentivize individuals and businesses to reduce their carbon footprint by transitioning to cleaner energy sources.

However, in recent years, the carbon tax had become a contentious issue, particularly as Canadians faced rising inflation rates. Conservative Leader Pierre Poilievre’s promise to “axe the tax” resonated with many voters, leading to increased pressure on the government to reconsider the policy. Carney, who had previously supported the carbon pricing scheme, acknowledged the divisive nature of the policy during his bid for the Liberal leadership and pledged to eliminate it.

Under the carbon pricing scheme, residents in provinces where the policy applied were eligible for rebates to offset the increased costs. Carney assured Canadians who had been receiving rebates that they would continue to receive them until the end of April, with the next payment scheduled for April 15.

Despite the swift action taken by Carney’s government to remove the consumer carbon tax, Poilievre criticized the move, arguing that the tax could only be abolished through legislation passed by Parliament. He accused Carney of attempting to bypass the democratic process by using an order-in-council to repeal the tax.

In response to the federal government’s decision, B.C. Premier David Eby announced plans to introduce legislation to eliminate the province’s consumer carbon tax before the scheduled increase on April 1. Eby stated that British Columbians would not have to bear the additional financial burden imposed by the federal legislation and that his government would work towards completely abolishing the tax in the future.

While the consumer carbon tax has been removed, a federal industrial carbon tax on large emitters remains in place as part of the government’s efforts to reduce greenhouse gas emissions and address climate change. Carney’s administration will continue to implement policies aimed at achieving environmental sustainability and economic prosperity for all Canadians.