Sunday, December 28, 2025

Liberals Are Scrambling to Figure Out How to Remove the Carbon Tax

The federal Liberal government is currently working through the logistics of fulfilling incoming Prime Minister Mark Carney’s commitment to eliminate the consumer carbon tax, as the scheduled April 1st increase of 19% approaches.

In comments made Tuesday, Environment Minister Steven Guilbeault indicated that the implementation path remains unclear. “We’re looking into different options,” Guilbeault explained. “Do we need to change the legislation? Can we go through the regulatory route? Like, what are the options? I don’t have answers for you.”

Liberal MP Adam van Koeverden offered more definitive assurances regarding the April deadline. “That won’t go up on April 1,” van Koeverden stated, adding, “In short order the consumer carbon tax will be removed from other fuels as well.” However, he acknowledged that finalizing the details falls to the environment and finance ministers.

When questioned about the timeline relative to the next federal election, Guilbeault remained noncommittal. “(Carney) said he wanted to get rid of it,” Guilbeault noted. “We are looking into how that could be done and how rapidly.”

Also read: If Both Carney And Freeland Now Want To Scrap Carbon Tax, Why Was It There In The First Place?

In a Toronto Sun opinion piece, columnist Lorrie Goldstein suggested that Carney isn’t truly eliminating carbon taxation but rather reconfiguring it by “folding it into Trudeau’s industrial carbon tax and adding a second carbon tax — a tariff that Canadians will pay on many imported goods — misleadingly described as a ‘border adjustment mechanism.'”

Goldstein also highlighted previous carbon tax controversies, noting that before the 2019 election, then-environment minister Catherine McKenna had indicated the carbon tax wouldn’t rise above $50 per tonne after reaching that level in 2022. Following the election, however, Prime Minister Justin Trudeau announced annual increases until the tax reaches $170 per tonne in 2030.


Information for this story was found via 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.

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