Guilbeault, Minister of Environment, acknowledges Carney’s proposal to replace carbon tax
Environment Minister Steven Guilbeault acknowledges Liberal leadership candidate Mark Carney’s proposal to replace the federal consumer carbon tax. This comes after Guilbeault previously hinted at the possibility of substituting the policy with another environmental measure.
During an interview with CBC News on Jan. 22, Guilbeault confirmed that he had discussions with Carney regarding the specifics of his plan.
Guilbeault stated, “Yes, I have spoken with him, and I’m confident that by collaborating with other members of the Liberal caucus and membership, we can devise a plan to help Canada achieve its climate objectives.” He also praised Carney’s expertise and vision on the matter.
Regarding the carbon tax, Guilbeault stated on Jan. 21 that he was aware of its declining popularity, attributing it to misinformation spread by Conservative Leader Pierre Poilievre. He emphasized the need for a replacement environmental policy if the carbon tax were to be eliminated, along with measures to assist Canadians with their cost-of-living concerns.
Guilbeault expressed his support for Carney’s candidacy for Liberal Party leadership, citing their previous collaboration on environmental issues and the transition away from fossil fuels. He believes Carney is well-suited to guide the nation towards a sustainable economy and combat climate change.
Carney, a former governor of the Bank of Canada and Bank of England, emphasized the importance of replacing the carbon tax with a more effective policy during his Liberal Party leadership campaign launch on Jan. 16.
While Carney did not outline specific details, he highlighted the need for a policy that reduces greenhouse gas emissions, enhances Canadian companies’ competitiveness, and generates employment opportunities. He also stressed the importance of rebates to ensure Canadians are financially supported.
In his book published in 2021, Carney praised Canada’s carbon pricing system as a model for others to follow.
Other Contenders Shy Away From Carbon Tax
Several other contenders in the Liberal leadership race have distanced themselves from the carbon tax recently.
Former Deputy Prime Minister Chrystia Freeland expressed concerns about the carbon tax’s lack of appeal to Canadians and the need to heed public feedback.
Karina Gould, another candidate in the leadership race, also disapproved of the carbon tax and vowed to cancel the upcoming tax hike.
The federal carbon tax, initially set at $20 per tonne in 2019, has been increasing by $15 annually and is scheduled to reach $170 per tonne by 2030. While the Conservative Party argues that the tax has raised the cost of essentials, the Liberal government contends that most households receive more in rebates than they pay in taxes.
A report by the Parliamentary Budget Office found that by 2030, the average Canadian household would receive more from the Canada Carbon Rebate than they pay in taxes. However, when considering the economic impact on GDP and investment income, households might face disadvantages.
