Canada’s climate policy stands at a crossroads.
The carbon tax, a key policy achievement for the Liberals which was once heralded as a cornerstone of the country’s strategy to tackle climate change, now faces intense political opposition. Moreover, with the resignation of Justin Trudeau it is no longer clear who will lead the Liberals in the next election later this year — an election that the Conservative Party under Pierre Poilievre is explicitly positioning as a referendum on the carbon tax itself.
Canada has committed to ambitious climate targets. The federal government aims to reduce greenhouse gas emissions by 40 to 45 per cent from 2005 levels by 2030 and also achieve net-zero emissions by 2050. Central to this mission is the carbon tax.