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Liberals set to erase consumer carbon tax law as they reshape industry emissions charges

Parliament’s return clears the path to scrapping the household levy in favor of tougher fees on major emitters.

Prime Minister Mark Carney speaks before signing a decision note to eliminate the consumer carbon price on Parliament Hill in Ottawa on Friday, March 14, 2025. THE CANADIAN PRESS/Justin Tang
Prime Minister Mark Carney speaks with media during a news conference in Ottawa, Wednesday, May 21, 2025. THE CANADIAN PRESS/Adrian Wyld

Overview

  • On May 27, the government tabled legislation to formally remove the consumer carbon pricing law after setting the levy to zero by regulation in March.
  • Mark Carney used executive regulations to halt the household carbon price as his first act in office, fulfilling his campaign promise.
  • Officials say repealing the consumer levy will clear legal hurdles for a strengthened industrial carbon pricing system expected to deliver deeper emissions cuts.
  • Major oil and gas producers have lobbied to scrap the industrial levy, warning it undermines Canada’s competitiveness against foreign rivals.
  • Conservative leader Pierre Poilievre has pledged to eliminate both consumer and industrial carbon levies if elected, calling the charges burdensome.