Liberal leadership candidate Mark Carney says that he will abandon the consumer carbon tax of his party and replace the policy with an incentive program that rewards Canadians for making green decisions.
He also said that he would work with other related countries to introduce an adjustment of the carbon border, effectively a rate, which would guarantee that countries with weaker climate change policies in front of financial barriers when they try to export products to Canada.
When making the announcement, Carney pointed to the president of the United States, Donald Trump, for his withdrawal of the climatic policies of his predecessors, as well as his attacks against Canada, saying that although Trump goes back to the struggle of climate change, he will give A step forward.
“With Canada now under attack, it is time to join. And since Canada’s current climatic policy has become too divisive, it is time for a new more effective climate plan that everyone can support,” said Carney on Hoylifax on Friday.
“My government would immediately eliminate the consumer carbon tax, but we will not stop there,” he said. “On the other hand, what we will do is create an incentive system to reward Canadians for making more ecological decisions.”
While the plan would see a Carney government immediately eliminate the carbon taxes from households, as well as small and medium enterprises, it would maintain the production system based on production collected in large industrial emitters, which is scheduled to increase in The next decade.
“What it does is that it provides a very clear signal to large companies to make investments now to reduce their emissions, to be more competitive,” said Carney. “Indeed, we will provide you with more options to reduce emissions because they can pay the reductions in Canadian household emissions.”
Carney said the refund program will be designed to reward Canadians for buying products such as energy efficiency appliances, electric vehicles or better home insulation with a fixed reimbursement in dollars.
These consumer refunds will be packaged as a loan that large industrial issues can buy and use with their own emissions.
The conservatives call Carney to retreat the support for carbon tax
Conservative leader Pierre Poilievre reacted to the announcement by publishing a video and accompanying statement claiming that Carney “will stop the liberal tax for a few months to overcome the elections.” He said Carney would bring an even larger carbon tax that “will drive jobs at the hands of President Trump.”
“Here we face a massive tariff threat of a president who wants to take our work and businesses, and Mark Carly wants to help him do it,” said Poilievre.
Sebastian Skamski, Poilievre spokesman, told CBC News that while a price on carbon remains, “Canadians will continue to suffer under a new name.”
Liberal leadership candidate Mark Carney says that he will abandon the consumer carbon tax of his party and replace the policy with an incentive program that rewards Canadians for making green decisions.
Carney said he is leaving the carbon tax that he once supported not because it is ineffective, but because it is a problem too divisive for Canadians, something that blamed Pailievre.
“It has been fed by erroneous information and is found frankly by the opposition leader, but that’s fine, we are in this situation and it is important that climatic policy has broad acceptance,” he said.
“There is a better way to do things. We have worked to create a better way to do things, which maintains an element on the price of pollution, the most important element that is the industrial price,” he said.
Carbon edge adjustment mechanisms
Carney said his plan would ensure that Canadian companies can compete in a leveling playing field penalizing “foreign contamination imports.”
“We are going to develop a carbon border adjustment mechanism,” he said. “What he does is promote work here at home, avoid carbon escape abroad and align Canada with our allies who are still involved in the fight against climate change.”
Liberal leadership candidate Mark Carney says that it is “important that climatic policy has broad acceptance”, and that the price of carbon consumer has become “very divisive.” Carney announced on Friday that, if he was chosen as the party leader, he will eliminate the price of carbon consumer and, instead, he will establish an incentive program that would reward Canadians for making more green decisions.
The EU began to implement its carbon border adjustment mechanism in 2023 through the collection of information on the emissions generated by the production of different goods. It will begin to collect carbon rates in 2026.
Initially, rates will be applied to materials that traditionally generate many emissions to produce and have a lot of global competition, such as iron, steel, cement, fertilizers, aluminum, hydrogen and electricity.
Imports from countries with comparable carbon prices would not need to pay the EU carbon edge rate.
Sebastian Skamski, a Poilievre spokesman, told CBC News that adding a “carbon tax on the border guarantees gas prices, heating and edible [will] UP AND LINES IN FOOD BANKS [will] increase.”
The price of carbon falls out of disgrace
The consumer carbon tax began in April 2019 at a cost of $ 20 per ton and increased by $ 10 per year to $ 50 by 2022, when it began to increase by $ 15 per year. In April 2024, it increased to $ 80 per ton, on the way to reach $ 170 per ton by 2030.
The federal carbon price, or support, does not apply in Quebec, British Columbia and the Northwest territories because they have their own carbon prices that meet the federal standard.
In the provinces that use federal support, the carbon price is applied to emitting fuels Fuel load rates That varies from fuel fuel depending on the amount of equivalent emissions of CO2 that they generate when they burn.
Ninety percent of government taxes from carbon tax are returned to homes through Canadian carbon refund payments each quarter.
The other 10 percent of carbon tax revenues are aimed at programs that help companies, schools, municipalities and other beneficiaries of subsidies to reduce their consumption of fossil fuels.
The Office of the Parliamentary Budget (PBO) officer has found that most households, particularly those at the lower end of the income scale, end up earning when what they pay through the price of carbon are compensated with what they receive in Refunds.
Erin O’Toole, who served as a conservative leader in the federal elections of 2021, campaigned in his own carbon prices policy. But the current conservative leader Pierre Poilievre has made the elimination of the tax a central part of his opposition to the liberal government.
The former Minister of Finance and VicePrimer Minister Chrystia Freeland, who also runs for the leadership of the Liberal Party, told CBC News that the contest that will also do so should win. junk carbon prices.
Freeland’s campaign said the policy that replaces the tax would be developed in collaboration with the provinces and territories.
Although the two leaders in the leadership who now commit to reduce the tax, Karina Gould, the former leader of the Government House who challenges them for leadership, has only promised to keep the tax at their current level.
Liberal leadership will be decided in a vote on March 9.