B.C. scrapping provincial carbon tax after Carney kills it federally
British Columbia Premier David Eby has announced that his government is working on legislation to eliminate the province’s consumer carbon tax. This decision comes after Prime Minister Mark Carney promised to do the same at the federal level.
Speaking at a town hall in Surrey to address concerns about potential tariffs from the United States, Eby revealed that a new law would be introduced before April 1 to prevent British Columbians from facing a scheduled increase of $15/tonne mandated by federal regulations. Following this, Eby stated that his party would be moving to completely abolish the carbon tax.
Moments before Eby’s announcement, Mark Carney, in his first act as the new Prime Minister of Canada, issued an order-in-council to eliminate the federal carbon tax.
The carbon tax in British Columbia was initially introduced in 2008 under then-Premier Gordon Campbell of the B.C. Liberals, marking the province as the first jurisdiction in Canada to implement carbon pricing through a consumer tax. The tax started at $10 per tonne of carbon dioxide emissions and was intended to be revenue-neutral, with the government refunding costs to lower-income residents.
Despite opposition from the NDP at the time, the tax gained popularity and was credited by economists for reducing emissions while supporting economic growth. The NDP eventually embraced the tax after coming into power in 2017.
However, the tax’s popularity dwindled when Justin Trudeau introduced federal requirements in 2019 for provinces to implement their own carbon pricing or adhere to federal guidelines. The federal Conservatives campaigned against the tax, and Carney, during his bid for Liberal leadership, vowed to eliminate it, citing its divisiveness.
During his provincial leadership campaign last year, Eby acknowledged the contentious nature of the carbon tax and pledged to follow suit if federal requirements were dropped. He emphasized the need to hold “big polluters” accountable and promote the adoption of pollution-reducing technologies to combat climate change’s adverse effects, such as droughts, forest fires, and other disasters in B.C.
As the government works towards scrapping the carbon tax, Eby reiterated the importance of transitioning to more sustainable practices and ensuring that those responsible for significant emissions contribute their fair share towards environmental conservation.
