Freeland Open To Scrap Her Own Party’s Carbon Tax Plan If She Becomes The Next Prime Minister

Former finance minister Chrystia Freeland appears poised to abandon the consumer carbon tax if she becomes the next leader of Canada’s Liberal Party, according to sources close to her leadership campaign. The vow marks a sharp reversal from her previous defense of the tax under Prime Minister Justin Trudeau’s government—a move that has left many wondering just how far Freeland will go to secure victory in a party that seems increasingly split on its climate strategy.

Speaking with CTV News on condition of anonymity, a source described Freeland’s sudden policy pivot as a necessary step to reclaim public trust.

“She is ready to make difficult decisions to meet our emissions targets and make sure big polluters pay for their outsized emissions,” the source said. “But she will not fight Canadians on a policy they have been clear, they do not support. That’s why Chrystia Freeland will replace the consumer carbon price with a system that will work within our federation and will be developed collaboratively with provinces and territories.”

The former finance minister’s stance arrives at a critical moment for the Liberals, who face collapsing support and growing skepticism of their carbon pricing system. Freeland’s promise to scuttle the consumer carbon tax, set to rise again in April, is likely to generate significant pushback from environmental advocates. It also raises questions about the sincerity of her reversal, given her outspoken support for carbon pricing during her tenure in Trudeau’s cabinet.

Freeland’s abrupt conversion on carbon taxes might be seen by some as an act of political opportunism rather than principled policy-making. After all, when the going got tough during her time in cabinet, she vigorously defended the tax.

Now, facing her party’s lowest polling numbers in years, she appears to have discovered a newfound affection for “listening to Canadians.” On Wednesday, Freeland posted on X (formerly Twitter), signaling her gratitude for the ideas of grassroots Liberals. But cynics might suggest her “fifth cup of tea and the calls aren’t stopping” is more about serving up promises that lure back the electorate than about finding the perfect brew of climate policy.

In the same breath, Freeland is also positioning herself as a would-be champion of Canadian interests against the looming specter of U.S. President-elect Donald Trump’s trade policies. Sources confirm she intends to announce retaliatory tariffs if the White House proceeds with a sweeping 25% tariff on all Canadian goods.

It is a stance that will no doubt invite comparisons to her previous role as Canada’s chief negotiator with the Trump administration—an experience that left her labeled “totally toxic” by the president-elect. Now, should she win the Liberal leadership, she aims to conjure that same fierce determination, though it remains unclear whether these tariffs would prove an effective tool or simply inflame cross-border tensions.

Despite recent resignations and cabinet turmoil, several prominent Liberal figures are already throwing their weight behind Freeland’s leadership bid. Winnipeg MP Ben Carr and former minister Randy Boissonnault have publicly endorsed her candidacy, framing her as an assertive leader capable of steering the party back to electoral safety.

Yet the revolving door in the Prime Minister’s Office—particularly Freeland’s resignation on December 16, which she tendered over disagreements with Trudeau on everything from GST holiday breaks to $250 rebate checks—has some Liberals privately questioning how well she works with others who do not share her vision.

Her resignation letter was blunt, calling the government’s consumer relief measures “costly political gimmicks.” Her critics, however, point out that scrapping a consumer carbon tax right before an election is a costly gimmick of its own, meant to recast Freeland as the champion who keeps money in Canadians’ pockets.

At the same time, Freeland is likely to face stiff competition from Mark Carney, the former Governor of the Bank of Canada and Bank of England. Carney announced his own leadership run on Thursday in Edmonton, and he, too, has signaled potential changes to Canada’s carbon pricing regime.

In an appearance on “The Daily Show” with Jon Stewart on Monday, Carney hinted that Canada’s real emissions problem lies in industrial sectors rather than households.

“We need to do it in a way that Canadians today are not paying the price,” Carney said, stopping short of endorsing or rejecting the existing carbon tax structure.

With Carney’s global economic credentials and frequent appeals to climate action, he might well become the darling of Liberals who see Canada’s future in green innovation. His challenge will be to reconcile environmental responsibilities with the grumbling among Canadians over a carbon tax that has become politically toxic in many parts of the country.

The Liberal leadership race comes after Trudeau announced his resignation as leader, effective March 9. Polls suggest the Liberals are trailing badly, with the Conservatives riding high at 47% compared to the Liberals’ 20%, according to Abacus Data. The new leader, whoever it ends up being, may face a short-lived premiership. Opposition parties have threatened a no-confidence vote on March 24, setting a tense countdown for whoever emerges as the Liberal victor.

The consumer carbon tax took effect in 2019 and was designed to incentivize greener habits while offering rebates to offset higher costs. Critics, including some Liberal premiers, argue that the rebates fail to keep pace with rising costs at the pump and in heating bills.

The scheduled increase to $95 a tonne on April 1, plus further annual hikes, has only deepened public unease. Many Canadians feel strapped for cash and unconvinced that the tax effectively reduces emissions. Some provinces have already partially abandoned or challenged the system in court, fueling heated debates that are unlikely to dissipate now that Freeland appears ready to throw the program under the bus.


Information for this story was found via CP24 and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Share
Tweet
Share
Reddit