Poilievre Pledges To Abolish Canada’s Industrial Carbon Tax If Elected

Canada’s Conservative leader, Pierre Poilievre, has vowed to eliminate the country’s industrial carbon tax if his party wins the upcoming election. The pledge, made on Monday, includes the removal of both the consumer carbon price and the tax burden on heavy industries, a move that could reshape the nation’s environmental and economic policies.

Poilievre’s statement marks the first time he has explicitly committed to scrapping the industrial carbon tax, which was introduced by the previous government under Prime Minister Justin Trudeau. While Poilievre has long promised to eliminate the consumer carbon tax, the recent move by Prime Minister Mark Carney to reduce the consumer tax to zero could defuse that issue for the time being.

Instead of continuing the carbon tax, Poilievre proposes offering tax credits to large businesses that maintain emissions below the global average. He argues that this approach will attract jobs and investment to Canada, especially in light of economic pressures from U.S. President Donald Trump’s trade policies.

“A Conservative government will use technology, not taxes, to protect our environment,” Poilievre said in a video statement. “While Liberals tax businesses for using energy, Conservatives will cut taxes and boost incentives for those who reduce emissions. Carrot, not stick.”

However, Poilievre’s plan has raised concerns about Canada’s ability to meet its climate goals. The Conservative leader’s proposal introduces additional uncertainty for businesses, as Carney has already committed to tightening the industrial carbon tax and launching new consumer incentives for greener choices.

Provincial Responses to Carbon Tax Policy

Poilievre’s vow to scrap the industrial carbon tax would also place pressure on provinces to reconsider their own carbon pricing strategies. Under the current framework, provinces and territories are required to either implement their own carbon pricing systems or adopt the federal tax. Only four provinces—Manitoba, Nunavut, Prince Edward Island, and Yukon—have opted for the latter.

Alberta, Canada’s largest oil-producing province, has signaled that it is likely to maintain its existing carbon price on heavy industries. Premier Danielle Smith, along with her environment minister, expressed support for returning jurisdictional authority to the provinces to regulate their own industrial emissions.

Meanwhile, Ontario, Canada’s most populous province, has refrained from directly commenting on the status of its industrial carbon pricing. Premier Doug Ford’s office emphasized the need for all levels of government to focus on reducing costs and enhancing economic competitiveness, particularly in light of President Trump’s trade policies.

Economic and Environmental Concerns

The industrial carbon tax has been a significant driver of Canada’s emissions reduction efforts, contributing to 20% to 48% of the national reductions expected by 2030, according to Clean Energy Canada. Mark Zacharias, the organization’s executive director, criticized Poilievre’s plan, arguing that canceling the carbon tax would undermine Canada’s position in global trade and hinder the country’s clean economy goals.

“If Canada is to increase trade with nations that are committed to carbon pricing, we must match their ambition, not abandon policies that support a clean economy,” Zacharias said.

Rick Smith, president of the Canadian Climate Institute, echoed this sentiment, warning that eliminating the industrial carbon tax would harm Canadian exports to markets like the UK and EU, where carbon tariffs are being introduced to favor low-carbon producers. Smith also noted that such a policy shift would create significant uncertainty for businesses and investors, potentially stalling Canada’s economic recovery.

Mark Carney, who was recently appointed as the new Prime Minister of Canada, voiced similar concerns. In a press conference in London after meetings with UK Prime Minister Keir Starmer, Carney stressed that carbon pricing is a key requirement for diversifying trade with the EU and UK. He pointed out that both regions are increasingly focusing on carbon reduction as part of their trade policies.

Poilievre’s Vision for a Competitive Canada

In response to these concerns, Poilievre argued that reducing taxes on businesses would help position Canada as a global leader in production, ultimately benefiting both the environment and the economy. He cited Canada’s relatively low carbon footprint in aluminum production as an example, contrasting Canada’s two tons of emissions per ton of aluminum to China’s 12 tons.

“By lowering taxes, we will unlock a massive economic boom, bringing jobs and production back to Canada from the U.S. and other countries,” Poilievre said. “Our factories, mines, and mills will be buzzing once again.”

As the election approaches, Poilievre’s carbon tax repeal proposal is likely to continue sparking debate over the balance between environmental sustainability and economic competitiveness.