Carbon tax's fate uncertain as Liberal leadership front-runners distance themselves from key policy
Price on carbon system is a central piece of Trudeau's environmental policy
The consumer carbon tax's days appear numbered as the two perceived front-runners to become Liberal leader distanced themselves from the party's signature environmental policy on Thursday.
A source close to former finance minister Chrystia Freeland's campaign said she would drop the consumer carbon tax if elected leader.
The source, who was not authorized to speak publicly, told CBC News the former deputy prime minister will "make difficult decisions to meet our emissions targets and make sure big polluters pay for their outsized emissions."
But the source said Freeland "will not fight Canadians on a policy they have been clear they do not support."
"Freeland will replace the consumer carbon price with a system that will work within our federation and will be developed collaboratively with provinces and territories," said the source.
The news was first reported by CTV News.
Freeland has not yet formally declared her intentions to replace Prime Minister Justin Trudeau, but a source on her campaign said she will officially launch her campaign Sunday in her Toronto riding, University-Rosedale.
As a prominent Liberal who held multiple high-profile cabinet positions over the last nine years, Freeland is widely considered to be one of the heavyweights in the race to be the next Liberal leader on March 9. The winner would become prime minister.
Carney says Canadian households need to be 'made whole'
The race's other perceived front-runner, former central banker Mark Carney, officially launched his campaign in Edmonton Thursday. He did not specifically say whether he will scrap the existing program, saying he'll present his full plan in the future.
But he also did not defend the carbon tax as he has in the past.
"I've said for a long time that if we you were going to take out the carbon tax you should replace with something that is at least if not more effective," Carney told reporters.
Carney said effectiveness is not just about lowering emissions but also about "ensuring that Canadian households are made whole in terms of their finances."
"Because perception may be that it takes out more than the rebate provides, but reality is different. And Canadians will miss that money, so you need a comprehensive approach, you need a comprehensive plan," he said.
The carbon tax, also known as a price on carbon, came into effect at $20 per tonne in 2019. It has steadily climbed in the years since and is scheduled to go up another $15 each year until 2030, when it reaches $170 a tonne.
The gradual increases are meant to act as a financial incentive for people and businesses to change their behaviour to burn less fossil fuels and transition to greener forms of energy.
Residents in provinces where the carbon tax applies receive money back through a rebate program.
Speaking in Windsor, Ont., Thursday, Trudeau defended his government's legacy and said a price on pollution is a way to reduce emissions that pays money back to Canadians in eight out of 10 provinces.
"Obviously, people running in elections, running for the leadership, will be able to put forward their own ideas about how to fight climate change," he said.
"But I'm very, very proud of our record of standing up and fighting climate change and making life more affordable."
Potential leadership candidate still defending program
Energy and Natural Resources Minister — and carbon tax defender — Jonathan Wilkinson has said he's "actively considering" a leadership run.
Speaking in Washington, D.C., on Thursday morning, he called it the most "economically efficient way to reduce emissions.
"Cancelling the carbon price is actually going to make people on modest incomes less well off in this country," he said.
The minister said he has questions for Freeland and any other leadership contender who wants to eliminate the program about how they plan to meet Canada's climate targets.
"And the target is aligned with what science tells us," he said
"So there are other ways to get to the target, but my question to Ms. Freeland will be: 'What is her climate plan and how will she do that?'"
Government House leader Karina Gould is expected to launch a leadership bid this weekend, according to her camp.
When asked during a news conference Tuesday if she would scrap the carbon tax, the Ontario MP said she'd have more to say in the coming days.
Conservatives attack Freeland's record
The Conservatives have long positioned themselves against the policy and have repeatedly called on Trudeau to call a "carbon tax" election.
In a statement, Conservative deputy leader Melissa Lantsman attacked Freeland's voting record on the carbon tax.
"After years of voting dozens of times to support the punishing carbon tax, no one believes Carbon Tax Chrystia's latest desperate attempt to trick Canadians," she wrote.
The Conservative Party launched a digital attack ad against Carney on Thursday, pointing to to his past support of carbon pricing.
The majority of the country's premiers have also been outspoken against the federal program. Earlier this year, they called on Trudeau to pause or cancel the spring increase to consumers, citing cost of living concerns.
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With files from David Cochrane, Peter Zimonjic and Kate McKenna
