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Conservative Leader Pierre Poilievre has dubbed Mark Carney's Clean Fuel Regulations "carbon tax 2.0," predicting they will increase gas prices by 17 cents per litre, similar to the previous consumer carbon tax.

“The new tax is starting to look a lot like the old tax, and Mark Carney thinks no one will notice,” Poilievre told reporters Wednesday morning.

A 2023 Budget Office analysis confirmed that Clean Fuel Regulations, mandating a tripling of ethanol in gasoline from 5% to 15%, would increase gasoline costs by 17¢ per litre.

A May 8 Clean Fuel Regulations note suggested most consumers, including farmers, might not see higher fuel costs due to price fluctuations. 

A 2023 Budget Office report estimated that without import charges, annual household costs would rise, from an average of $1,157 more in Alberta to $384 more in British Columbia, due to varying fossil fuel intensity.

Environment and Climate Change Canada stated the mandatory cost is not a tax, but a "market-based mechanism designed to spur innovation of clean technologies."

Poilievre scoffed at the notion. “Well, Conservatives have noticed, and that is why we … are making it a priority to … reverse the Liberal cost of living crisis by opposing Mark Carney's carbon tax 2.0.”

Prime Minister Carney, despite being an advocate of the carbon tax, eliminated the consumer carbon tax in March after months of promising tax reduction for Canadians. “Everyone dismissed the ‘axe the tax’ campaign, but then had to reverse themselves,” Poilievre noted. 

“On the eve of the election, he [Carney] was forced to promise to axe it, but I warned Canadians he would bring it back when he no longer needed their vote but still needed their money. And here we are today.”

A 2024 federal report warned that climate policies must address various challenges beyond emissions, including housing, food insecurity, energy affordability, and public transportation, echoing prior warnings about household costs.

The Journal of Public Health reports that 6-19% of Canadian households experience "energy poverty," defined as spending over 10% of income on heating/cooling or paying double the national median for fuel/electricity. This issue is not yet a national policy priority.

“We want to axe all carbon taxes for good, for real, for everyone, forever,” Poilievre said of the Conservative agenda. “We want to increase your purchasing power because we know it's not just gas and diesel.” 

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

Liberal MP Adam van Koeverden, the parliamentary secretary for the environment, acknowledged the policy has become "divisive" and "toxic."

“It’s just become a huge distraction,” said van Koeverden. “Unfortunately, you know, it sucks up all the oxygen in the room in a conversation. There are other ways we can reduce emissions and fight climate change that aren’t so divisive and toxic.”

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

“I did take some satisfaction in winning the debate on the carbon tax,” the Tory MP said. “Of course, I led the great Conservative team,” he added.