PM Carney defends carbon tax after axing it days ago

Prime Minister Mark Carney went on a bizarre rant yesterday, defending the carbon tax on his diplomatic mission to Europe.

 

The Canadian Press / Sean Kilpatrick

Prime Minister Mark Carney went on a bizarre rant yesterday, defending the same carbon tax he revoked only three days prior. “It’s a more efficient system [now],” he claimed.

“Our plan, and in fact the regime that's in place in Canada and a variant of this regime, is in place between the provinces,” said Carney, citing Québec, who has a provincial carbon tax regime in place. British Columbia rolled back its carbon tax on Friday.

The Prime Minister also reduced the consumer carbon tax Friday afternoon to a rate of zero, through an order-in-council. It is expected to be replaced with a comparable charge on industrial emitters, which will ultimately be passed on to consumers.

“We’re able to go out and see the world, we’re able to help Canadian companies prepare [for the transition to a green economy],” Carney told reporters.

“We have the opportunity to diversify trade … to the European Union, the United Kingdom, … [and] Asia [with] a form of price on carbon. It’s going to create jobs and it’s going to create new markets for our country,” he said.

The Greenhouse Gas Pollution Pricing Act outlined a planned carbon tax increase every April 1st, at the start of each budget year until 2030. Pierre Poilievre centred his attacks on the Liberal government around repealing the law.

“This law is still in place even though Mr. Carney signed a ‘fake executive order’ to hide the tax for 35 or 40 days leading up to the election,” Poilievre clarified. “It is still in place and it applies across the board,” he said.

The unpopular levy has been a target of Conservative attacks on the Liberals, as well as internal criticism from the Liberal caucus. 

It costs the average household between $377 and $911 annually, after receiving climate action rebates, according to the Budget Officer.

Bank of Canada Governor Tiff Macklem also told a parliamentary committee that scrapping the tax would drop inflation by 0.6%.

Meanwhile, a 2023 order paper submitted by Conservative MP Leslyn Lewis revealed the Liberal government paid the World Economic Forum (WEF) $493,937 to write a favourable report on the carbon tax. 

Carney served as a board member and agenda contributor to the Forum for years. He previously backed the levy but promised to eliminate it during his leadership bid

“To make nature-positive models investable, explicitly pricing in and articulating environmental cost factors to penalize unsustainable practices—such as through carbon taxes, for example—will be a game changer,” said the New Nature Economy Report.

It contends fiscal policy alone will not achieve a “nature-positive, low-carbon” economy, advising additional measures.

“Global interest groups should not be trusted to care about the prosperity of Canadians,” wrote MP Lewis last March 18. Governments globally collected $104 billion in carbon taxes in 2023.

“Carney’s proposed shadow carbon tax will be bigger than Trudeau's carbon tax,” warned Poilievre. “It’s ultimately a trick: Hide the tax before the election, and then bring it back bigger than ever after the election.”

The Official Opposition condemned Carney last September for advising the Liberal government to push the carbon tax. 

A 2024 Postmedia-Leger poll commissioned by the Taxpayers Federation showed 69% of Canadians opposed further carbon tax hikes, suggesting a pragmatic shift, with Canadians vying to reduce their tax burden.

Over half of respondents (51%) were not confident the Liberal Party would eliminate the consumer carbon tax. 

The fuel charge increases on natural gas (18 cents), gasoline (21 cents), diesel and home heating oil (25 cents) have now been cancelled.

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Alex Dhaliwal

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Alex Dhaliwal is a Political Science graduate from the University of Calgary. He has actively written on relevant Canadian issues with several prominent interviews under his belt.

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COMMENTS

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  • Bernhard Jatzeck
    commented 2025-03-18 22:01:45 -0400
    Maybe he’ll charge us a window tax, as windows let in daylight and there’s only so much shine left in the sun, you know. Con artists like him will find some way to chisel more money out of us.
  • Bruce Atchison
    commented 2025-03-18 20:51:37 -0400
    What a green scam fanatic blarney Carney is. Some people are stupid enough to think the carbon tax is gone. It’s just suspended. Only Poilievre is speaking the truth that it WILL come back bigger than ever. It’s all a political scam.
  • jerry stone
    commented 2025-03-18 18:44:40 -0400
    might as well toss virgins into a volcano to change climate , maybe that is next on the con to change climate ?