Poilievre says he would repeal federal carbon pricing for industrial emissions

Conservative Leader Pierre Poilievre has recently announced that if he were to lead the government, he would repeal both the federal consumer carbon tax and standards for pricing greenhouse gas emissions from large industrial emitters. In a news conference held in L’Orignal, Ont., Poilievre emphasized that there would be no taxes imposed on Canadian consumers or industries under his leadership.

Poilievre’s plan includes expanding eligibility for existing federal tax credits aimed at clean technology and manufacturing. He also intends to incentivize heavy industries that produce products with lower emissions than the global average. Instead of using punitive measures, Poilievre stated that his government’s approach would be based on rewards rather than penalties.

The federal carbon-pricing regime introduced by the previous government had two components – a consumer levy on fuel (commonly known as the carbon tax) and an emissions-trading system for large industrial emitters. While Prime Minister Mark Carney’s new Liberal government has taken steps to eliminate the consumer carbon tax, Poilievre’s stance on the industrial pricing system was unclear until now.

According to an analysis by the Canadian Climate Institute, pricing industrial emissions is expected to be a significant driver for reducing emissions in Canada, contributing to between 20 and 48 percent of all reductions by 2030. Canada has committed to reducing emissions by at least 40 percent below 2005 levels by 2030.

Most provinces have their own systems for pricing industrial emissions, with Alberta having implemented an industrial carbon-pricing system since 2007. Premier Danielle Smith of Alberta has expressed support for putting a price on industrial emissions, stating that the strategy is effective in reducing emissions.

While some critics argue that repealing the price on industrial emissions could create uncertainty for businesses and undermine Canadian exports, industry groups like the Cement Association of Canada and the Canadian Steel Producers Association have voiced their support for industrial carbon pricing as a means of decarbonization.

In response to Poilievre’s proposal, NDP’s climate change and environment critic Laurel Collins expressed concerns that the plan would result in large oil and gas corporations paying less tax. Despite differing opinions on the issue, the debate on carbon pricing and emissions reduction continues to be a key focus in Canada’s climate policy landscape.