Poilievre Vows to Scrap Industrial Carbon Tax, Expand Clean Energy Incentives

Conservative Leader Pierre Poilievre has pledged to eliminate both the consumer and industrial carbon tax, shifting the federal approach toward incentivizing companies to reduce emissions rather than penalizing them. This announcement follows new Prime Minister Mark Carney’s decision last Friday to reduce the consumer carbon tax rate to zero, meaning Canadians will no longer pay it on fuels while the Greenhouse Gas Pollution Pricing Act remains in place.

Speaking in L’Orignal, Ontario, Poilievre reiterated his commitment to repealing the entire carbon pricing framework, ensuring no federal obligation remains for consumers or industries. “There will be no taxes on consumers, no taxes on Canadian industries,” he declared at a press conference, standing beside a sign that read “Axe the Tax.” His plan would allow provinces to implement their own systems without federal interference.

The industrial carbon tax, also known as the output-based pricing system, currently applies only to Manitoba, P.E.I., Yukon, and Nunavut, as most provinces have their own frameworks. Alberta, the first province to implement industrial carbon pricing in 2007, welcomed Poilievre’s announcement. Premier Danielle Smith and Environment Minister Rebecca Schulz released a joint statement in support of the move, citing the need to restore provincial control over emissions policies.

If elected, Poilievre promises to replace carbon taxes with expanded federal tax credits for clean technology and manufacturing. He argues that lowering taxes on Canadian steel and aluminum—produced with lower emissions than foreign competitors—would encourage global manufacturers to relocate production to Canada, reducing worldwide emissions. “Cutting taxes on clean production will bring jobs and production home and bring global emissions down,” he stated, positioning his approach as one that relies on “technology, not taxes.”

Climate policy advocates have criticized Poilievre’s plan, warning that abolishing industrial carbon pricing could weaken Canada’s ability to attract clean energy investment. Clean Prosperity President Michael Bernstein described it as a “mistake” that would hinder economic opportunities, while the Canadian Climate Institute noted that industrial carbon pricing accounts for three times more emissions reductions than the consumer tax. Meanwhile, energy advisor Heather Exner-Pirot suggested corporate reaction would be mixed, with some firms valuing regulatory stability and others welcoming a more competitive investment climate.

Carney’s decision last week to reduce the consumer carbon tax to zero was seen as a direct response to Poilievre’s persistent attacks on the policy, which he has blamed for rising costs of food and fuel. While the tax technically remains in place, the price was scaled down through regulation, allowing Canadians to receive a final carbon-tax rebate before its phase-out.

As the political debate over carbon pricing intensifies, Poilievre remains firm in his stance that economic growth and emissions reduction can go hand in hand—without what he calls unnecessary taxation.