Canada’s new Prime Minister, Mark Carney, scrapped the federal consumer carbon tax, as his first major decision after being sworn in.
Carney had previously supported carbon pricing but changed his stance during his leadership bid, calling the tax “too divisive.” The tax had been a key political issue, with Conservative Leader Pierre Poilievre leading a strong campaign to “axe the tax.” He argued that it placed an unfair burden on Canadians struggling with the rising cost of living.
The tax, introduced by former Prime Minister Justin Trudeau in 2019, was meant to encourage businesses and individuals to reduce fossil fuel use and transition to greener energy. However, with rising costs and inflation, opposition to the tax grew, particularly among Conservatives.
Speaking after signing the repeal, Carney said, “This will make a difference to hard-pressed Canadians, but it is part of a much bigger set of measures to ensure we fight climate change, keep businesses competitive, and move the country forward.”
Poilievre was quick to criticise Carney, saying that removing the tax by regulation alone was not enough. “The carbon tax is still in place today. Until Parliament is recalled, this law remains the law of the land,” he said.
Earlier in the day Carney spoke to the media following the cabinet meeting, emphasising the government’s commitment to action. “We will be removing the Canada fuel charge, the consumer fuel charge, effective immediately,” he announced, reported CTV News.