Carney shifts carbon price strategy, pledges to make Canada a clean energy superpower
Carney suggested that as the world becomes more competitive, Canadian big companies must reduce their emissions to follow suit. Photo by Abdul Matin Sarfraz/ Canada's National Observer.
Climate action is a central pillar of Mark Carney’s campaign for the Liberal leadership and his bid to become the next prime minister, but with a major shift in strategy. Instead of maintaining the current carbon tax system that places the cost on consumers, Carney is proposing a new approach — shifting the financial burden entirely onto big corporations.
“The carbon tax looked good on paper and had some effect, but it became divisive for Canadians,” Carney told supporters during a campaign event in Scarborough on Wednesday.
Carney said that his leadership would bring a “practical change,” eliminating the carbon tax for consumers, small businesses, and farmers while shifting the responsibility to large corporations, which would be required to cut their emissions and fund Canadians’ clean energy choices.
Carney suggested that as the world becomes more competitive, Canadian big companies must reduce their emissions to follow suit.
“We're introducing changes so that if you decide to insulate your home, install a heat pump, or switch to a fuel-efficient car, those companies will pay you — not the taxpayer, not the government, but those companies,” Carney said, introducing a plan for a tax cut that would make up for the loss of the payments Canadians have received from carbon tax revenues, paid for by the industrial carbon price. “And everyone will be better off that way — that’s being practical.”
Beyond reshaping climate policy, Carney is pitching Canada as a global leader in clean energy and advanced industries. He believes the country is at a pivotal moment and must seize the opportunity to dominate emerging sectors like green technology, artificial intelligence, and modern infrastructure.
“We need to expand and modernize our energy infrastructure so that we are less dependent on foreign suppliers, and the United States as a customer,” Carney said. “We need to become a clean energy superpower.”
Carney said his government would drive long-term capital investments to boost economic growth. His plan includes building millions of homes to address the housing crisis, expanding clean and conventional energy to reduce reliance on the U.S., and modernizing ports and rail for new trade corridors. He also stressed the need to strengthen national security by investing in domestic defense infrastructure. These measures, he said, would create jobs, raise wages, and provide more resources for essential federal programs.
Upon entering the event, accompanied by members of Parliament, Carney was surrounded by a diverse crowd of supporters including environmental advocates, professionals from various business backgrounds, and Liberal supporters.
Omar Ha-Redeye, a supporter from Pickering, attended Carney’s event because of his concerns about the environment, particularly the protection of the Greenbelt.
“We have a Greenbelt that we almost lost, especially recently, under this provincial government's changes over the past couple of years,” Ha-Redeye said. “For us in Pickering, we want to see a government — a federal partner — that is committed to maintaining the environment and ensuring that even as we make decisions to grow our economy and provide a viable future for Canadians, we still treasure our most important resource, which is the environment.”
Ha-Redeye believes that Carney could be the leader to champion stronger climate policies, pointing to his background and global experience.
“I certainly think he has the potential to do that, given that he's an individual who comes originally from the Canadian North, where our environment is increasingly fragile to the effects of climate change,” Ha-Redeye said. “I think he also has very much of a global mindset, and in order for us, as Canada, to be able to figure out what steps we make to protect our environment going forward, it's going to require cooperation and partnership across all borders, all around the world.”
He noted that Carney’s international connections and experience in financial and climate policy could be key assets in advancing environmental protection efforts.
“An individual like Mark Carney, who has those types of relationships, and the experience, quite frankly, in building those relationships, may actually help us get that job done,” Ha-Redeye added.
Abdul Matin Sarfraz / Local Journalism Initiative / Canada’s National Observer
February 20th 2025
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Comments
As an environmental specialist I am all in favour of addressing climate change, but as a realist I believe politicians must focus on shorter term priorities that have an economic benefit, with climate as a side benefit. The failure of the carbon tax is the proof.
Would you agree that the "failure" followed several years of quiet success, until it was verbally attacked and turned into a big negative as a perception, even though the tax hadn't changed from when it was a "success"?
It's a failure either way, but the bar seems to be that "It's only a success if there's no way to attack it, even exaggerations that amount to lies". Man, that's one high bar.
You're likely right, though - that's politics.
Yes, something I'm surprised at as well, as I've said, what's been happening on social media is proof that outright attacks made possible by the algorithms totally sway people, but what's surprising is how those effects STILL seem SUBLIMINAL, i.e. people don't seem to recognize they've been affected by the algorithms!
"Instead of maintaining the current carbon tax system that places the cost on consumers, Carney is proposing a new approach — shifting the financial burden entirely onto big corporations."
This narrative simply concedes the dishonest argument around carbon pricing to the lying Conservatives.
Carbon pricing with dividend is progressive policy that leaves modest-income households better off.
Axing the tax benefits the rich, energy hogs, and the O&G industry. Low-income households stand to lose the most.
"Shifting the financial burden entirely onto big corporations."
Corporations pass on their business costs, including carbon costs, to their customers. I.e., consumers. That's us.
The consumer carbon tax may disappear, but prices will increase nonetheless. The carbon price becomes invisible and less effective. Worse, there is no consumer rebate to offset the higher costs. If corporations must also pay for tax cuts in lieu of rebates, business will also pass on those costs to consumers in the form of higher prices.
There is no magic pot of free money. One way or another, consumers will ultimately pay the costs of climate action, whether through carbon pricing with rebate; higher prices and inflation without rebate; or taxpayer-funded subsidies to consumers. Taking money out of one pocket to put it in another.
With the current carbon price in place or what Mark Carney proposes, either way, we will still pay the piper. I am not opposed to it either way, but unfortunate that some Canadians do not see the benefit from the current implementation, at least you get a rebate and expect that with the prorposed plan, we will only end up paying more with no rebate.
The right can't seem to see the forest for the trees and they only seem to believe the disinformation that Pierre Poilievre spews.