Environment Minister Guilbeault Says He’s Aware of Carney’s Plan to Replace Carbon Tax

Minister of Environment and Climate Change Steven Guilbeault lresponds to a question during a news conference in Ottawa on June 14, 2023. Adrian Wyld/The Canadian Press

Environment Minister Steven Guilbeault says he’s aware of Liberal leadership candidate Mark Carney’s plan to replace the federal consumer carbon tax, days after acknowledging the policy could be replaced with a different environmental measure.

Guilbeault made the comments during an interview with CBC News on Jan. 22, when asked if he had been briefed on the specifics of Carney’s plan.

“Yes, I have spoken with him, and I’m confident that by working together with other members of the Liberal caucus and membership, we can come up with a plan that will ensure that Canada achieves its climate goals,” he said.

“He’s incredibly knowledgeable. I have great respect for for everything he’s done, but also his vision and understanding of this issue.”

Guilbeault said on Jan. 21 he was aware that the carbon tax had become an unpopular policy, but said this was the result of Conservative Leader Pierre Poilievre spreading “disinformation.” He said on Jan. 21 that if the carbon tax were removed, it would need to be replaced with a different environmental policy, alongside a way to help Canadians manage cost-of-living issues.

Guilbeault also said he supported Carney as the next leader of the Liberal Party, saying he had worked together with him on issues like fighting climate change and transitioning away from fossil fuels. He said Carney is the “right person to help bring us into the next phase of our work, to support Canadians to build a strong economy, and to fight climate change.”

Carney, who previously served as the governor of the Bank of Canada and the Bank of England, said during his Liberal Party leadership campaign launch on Jan. 16 that if the carbon tax were to be taken out, it should be replaced with “something that is at least, if not more, effective. ”

While Carney did not lay out specifics, he said such a policy should reduce greenhouse gas emissions, make Canadian companies more competitive, and create jobs. He also said there needed to be rebates that ensured Canadians are “made whole in terms of their finances.”

Carney previously said in his book published in 2021 that Canada’s carbon pricing system was “a model for others.”

Other Contenders Shy Away From Carbon Tax

Other contenders in the Liberal leadership race have distanced themselves from the carbon tax in recent weeks.

Former Deputy Prime Minister Chrystia Freeland said on Jan. 19 that the carbon tax was not resonating with Canadians. “We have heard very clearly from Canadians in provinces where there is a consumer facing price on carbon that they don’t like it. That’s something that we have to listen to,” she said.

Karina Gould, who has served as government House leader and recently announced she is joining the leadership race, has also distanced herself from the carbon tax, and pledged to cancel the upcoming tax hike on April 1.

“I understand that the price on pollution is something that a lot of Canadians don’t feel speaks to what and how they think they can contribute and how they can make a difference,” she said on Jan. 19.

The federal carbon tax originally came into effect at $20 per tonne in 2019, has climbed by $15 annually ever since. It is currently set to hit $170 a tonne in 2030. While the Conservative Party has argued the tax has increased the cost of food, fuel and heating during a cost-of-living crisis, the Liberal government has said most Canadian households get more money back in rebates than they pay in the tax.

The Parliamentary Budget Office released a report in October that found the average Canadian household would receive more from the Canada Carbon Rebate than what they pay out in the federal carbon tax and related goods and services tax by 2030. However, the report said that households were worse off when the economic impact on Canada’s GDP and investment income is factored in.