Wednesday, March 19, 2025

Why Canada’s consumer price on carbon is ending

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He noted the Atlantic Liberal caucus had pushed for changes to the carbon price in the past, and secured a carve-out for home heating oil in 2023.

Why Canada is ending the consumer price on carbon

The consumer carbon pricing policy had been the focus of Conservative attacks on the Liberals for more than two years and had become a symbol of Canadians’ struggles with the high cost of living.

Conservative Leader Pierre Poilievre, whose rallying cry of “axe the tax” had him riding high in the polls until about six weeks ago, claimed on Friday that Carney can’t really abolish the carbon price without recalling Parliament to repeal the law.

“What he might do is hide the carbon tax by telling (the Canada Revenue Agency) to stop collecting it for two months before the election,”  Poilievre said, brandishing a copy of the law at a press conference in Ottawa.

He asked reporters whether they really believe Carney’s cabinet ministers, who have voted in favour of the carbon price for years, will actually end the policy. He suggested the Liberals would bring it back “two days after the election.” 

The government is able to end the consumer carbon price without repealing or amending the law.

What is the Greenhouse Gas Pollution Pricing Act?

The Greenhouse Gas Pollution Pricing Act, which was passed in 2019, sets out a framework for both the consumer carbon price and the industrial price.

The law allows the fuel price to be set by regulation, which means cabinet can set the price through an order-in-council, as it did Friday. 

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