Days after being sworn into office, Prime Minister Mark Carney has already moved on scrapping the consumer portion of Canada’s controversial carbon tax—at least on paper. Carney’s abrupt decision, announced in front of cameras as he signed what he called a “prime ministerial directive,” effectively sets the consumer fuel charge to zero by April 1 and ensures a final rebate payment in mid-April.
“This will make a difference to hard-pressed Canadians,” he declared. “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.”
The consumer carbon levy, first introduced in 2019 by his predecessor, former Prime Minister Justin Trudeau, was intended to give households and businesses a financial push toward cleaner energy. Rebates offset the added costs—but rising fuel prices and broad concerns about inflation turned the levy into a powerful rallying cry for Conservative Leader Pierre Poilievre’s “axe the tax” campaign.
At first glance, Carney’s move appears to follow through on a vow that gained him traction during his Liberal leadership bid, when he branded the existing policy “too divisive.”
Poilievre, however, dismissed Carney’s repeal as a ploy. “Until Parliament is recalled, this carbon tax law will be the law of the land,” he insisted, holding up a printed copy of the original legislation. “He’s hiding it. He can bring the tax back—and raise it to whatever he wants.”
Fuel was added to this fire when skeptics on social media claimed Carney was holding a fake document masquerading as a legal order. Executive authority for federal regulations in Canada technically resides with the Governor General in Council, not solely with the prime minister.
Controversy intensified after a new entry—“PC Number: 2025-0446,” dated March 15—surfaced on the official Orders in Council website. It purports to “set applicable fuel charge rates for all types of fuel and combustible waste to zero after March 31, 2025,” suggesting formal approval by the Governor General in Council.
In British Columbia, Premier David Eby promised to introduce legislation to scrap BC’s consumer carbon tax outright, saying residents “don’t have to pay that increase on April 1.” Yet in Alberta—where many had long demanded the elimination of the levy—Premier Danielle Smith struck a cautiously defiant tone, declaring that she’s “not fazed” by the consumer tax repeal.
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