This weekend Mark Carney handily won the Liberal leadership contest and was sworn in as Prime Minister. One of his first acts was to put in place an Order-in-Council (OIC) that reduces the carbon “tax” to 0 as of April 1. People who live in provinces that participated in the full program will still receive their April 15 benefit cheques, after which time the rebate program will end. The law itself can’t be entirely repealed until Parliament is in session, but the OIC functionally ends the program.
This move is not particularly surprising, because the carbon “tax” had become a highly divisive issue, in spite of quarterly dividends and net gains for the average family. Voters instead have been led to believe that the carbon tax is responsible for recent increases in food prices and other costs of living. This attack on carbon pricing, led by Poilievre and the CPC, prompted Carney to act as he did.
While perhaps understandable under the circumstances, it is an unfortunate move because the carbon “tax”, which better described as a carbon fee-and-rebate program was simple to implement and inexpensive to administer. It relied on market pressure to encourage people to make less expensive choices and rewarded low carbon choices with a rebate. However, the price was actually too low to significantly impact consumer behaviour, and the fee structure was poorly communicated and not well understood by the public.
Without this fee-and-rebate program in operation, it’s not clear what will replace it. International trade agreements require a carbon reduction program, and we may be penalized without a functioning program. A new program that, for example, sets industry-by-industry standards is likely to be more costly to Canadians overall if it requires inspectors or creates opportunities for legal battles.
Throughout his “axe the tax” campaign, Poilievre never once offered an alternative, and now, instead of acknowledging this “win” because Carney gave in to pressure, Poilievre has instead accused Carney of trying to hide the tax.
It’s in place today. Until Parliament is recalled, this carbon tax law will be the law of the land.
— Pierre Poilievre, March 14, 2025
Poilievre wanted the carbon tax to end, and he got what he wanted, the end of the Carbon Tax. He could congratulate Carney. At the very least, he could use this “win” to explain the CPC’s strategy. Instead, he has relied on his usual strategy of partisan attacks based on misleading information.
Poilievre’s talk would be all hollow bluster, were it not actually dangerously popular.