Carney kills consumer carbon tax in first move as prime minister

Prime Minister Mark Carney wasted little time in removing a potent point of attack for the Conservatives in recent years: the consumer carbon tax.

After being sworn in on Friday, Carney's cabinet removed the tax effective April 1, through what's known as an order-in-council.

"This will make a difference to hard-pressed Canadians, but it is part of a much bigger set of measures that this government is taking to ensure that we fight against climate change, that our companies are competitive and the country moves forward," Carney said in front of cameras that were allowed into the cabinet meeting room.

Former prime minister Justin Trudeau first implemented the carbon pricing scheme in 2019.

WATCH | Carbon tax ended on Carney's first day in office: 

PM Carney eliminates carbon tax as 1st order of business

10 hours ago

Duration 1:11

Prime Minister Mark Carney signed his first piece of government business, saying he is eliminating the consumer fuel charge immediately. Carney said that Canadians who have been receiving rebates will continue to get them until the end of April.

But as Canadians experienced high inflation in the years following, Conservative Leader Pierre Poilievre's pledge to "axe the tax" gained traction among voters.

Carney had previously supported a carbon pricing scheme, but said during his bid for the Liberal leadership that the current policy had become "too divisive" and promised to kill the policy.

It was designed as a financial incentive for people and businesses to change their behaviour to burn less fossil fuel and transition to greener forms of energy, thus helping Canada lower its emissions.

To help offset costs, rebates were offered to residents in provinces where the policy applied. 

Carney said Canadians who have received the rebates will still get their next cheque on April 15.

WATCH | 'Trump tariffs and Carney's carbon tax will destroy' industry, Poilievre says: 

'Trump tariffs and Carney's carbon tax will destroy' industry, Poilievre says

11 hours ago

Duration 2:24

Conservative Leader Pierre Poilievre says Prime Minister Mark Carney cannot abolish the federal carbon pollution pricing system without legislation, which he says would require Parliament being recalled.

Speaking to reporters earlier Friday, Poilievre said removing the carbon tax via regulation wouldn't go far enough and accused Carney of trying to "hide" the tax.

"This is the carbon tax law," Poilievre said, holding up a printed copy of the legislation.

"It's in place today. Until Parliament is recalled, this carbon tax law will be the law of the land."

Shortly after Carney signed Friday's order-in-council, B.C. Premier David Eby announced at a town hall meeting that his government would be drafting legislation to scrap his province's consumer carbon tax.

"British Columbia will be introducing a law before April 1 that ensures that British Columbians don't have to pay that increase on April 1," he said, referring to the scheduled increase of $15 per tonne that is required by federal legislation.

Following that, he said, his party would be moving to scrap the tax "altogether."

In 2023, the Liberal government put a three-year pause on the carbon tax for home heating oil.

A federal industrial carbon tax on large emitters remains in place.