The federal government is taking formal steps to erase consumer carbon pricing from Canadian law, marking the end of what was once the centerpiece of the Liberal climate agenda.
Prime Minister Mark Carney made headlines in March when, in his first act after being sworn in, he used regulatory powers to effectively kill the consumer carbon price by setting it to zero. At the time, Parliament was not in session, prompting critics—especially from the Conservative Party—to accuse him of a temporary political move. They warned the policy could return after the election, since the law itself remained intact.
Now, with Parliament back in session, the government is moving to repeal the consumer carbon pricing law entirely, turning a regulatory action into a legislative one.
Carney has signaled a pivot in climate strategy, vowing to bolster the industrial carbon pricing system instead. That policy targets heavy emitters and is expected to yield greater emissions reductions than the consumer tax.
However, not everyone is on board. Canada’s oil and gas producers have urged Carney to also repeal the industrial carbon price, claiming it puts them at a disadvantage compared to international competitors. So far, the government has held firm on maintaining that system, even as it dismantles the consumer-facing component.