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Canada’s Carbon Pricing Becomes Central Issue in Federal Election

Pierre Poilievre pledges to repeal entire carbon pricing system, while Mark Carney begins partial rollback by eliminating consumer levy.

Conservative leader Pierre Poilievre speaks with media in the Foyer of the House of Canada, Monday, Mar 10, 2025 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Conservative leader Pierre Poilievre speaks in the House of Commons on Monday, March 10, 2025 in Ottawa.
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Cars release exhaust fumes as children head to school in Frankfurt, Germany, Feb. 27, 2023.

Overview

  • Conservative Leader Pierre Poilievre announced plans to repeal Canada’s entire carbon pricing system, including levies on industrial emitters and consumers, if elected.
  • Prime Minister Mark Carney has initiated the removal of the consumer carbon levy, effective March 31, but retains the industrial levy as part of a partial rollback.
  • Poilievre criticized the Liberals for not recalling Parliament to repeal the consumer levy through legislation, citing economic pressures on industries like steel and aluminum.
  • The industrial levy is currently used in only a few provinces and territories, while most have their own systems aligned with federal minimum standards.
  • The upcoming federal election is shaping up as a referendum on carbon pricing, with debates focusing on economic impacts, climate policy, and cost-of-living concerns.