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Canada’s Carbon Pricing Debate Heats Up as Election Nears

Prime Minister Carney moves to repeal the consumer carbon levy, while Conservative Leader Poilievre pledges to abolish the entire system, including industrial pricing.

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

  • Prime Minister Mark Carney has initiated the repeal of the consumer carbon levy, effective April 1, 2025, marking a significant shift in Canada’s climate policy.
  • Conservative Leader Pierre Poilievre has vowed to eliminate both the consumer and industrial carbon levies if elected, framing the upcoming election as a referendum on carbon pricing.
  • The industrial carbon levy, applied federally in a few provinces, is considered a cost-effective tool for reducing emissions but is criticized by Poilievre for harming industries like steel and aluminum.
  • The elimination of the consumer carbon levy is expected to lower gas prices by 10 to 15 cents per litre but will also end quarterly rebate payments for most households.
  • Provinces like British Columbia face potential budget shortfalls from the loss of carbon levy revenue, raising concerns about funding for climate initiatives.