Commonwealth_ British Columbia Premier David Eby has announced that his government is preparing legislation to eliminate the province’s consumer carbon tax. This decision follows Prime Minister Mark Carney’s commitment to repealing the federal carbon tax, a move he enacted through an order-in-council as his first action in office.
Eby made the announcement Friday afternoon at a town hall in Surrey, where discussions centered on the economic threat posed by potential U.S. tariffs. He revealed that legislation would be introduced before April 1 to prevent British Columbians from facing a scheduled carbon tax increase of $15 per tonne, a requirement under federal law.
“This is the first time we’ve shared this,” Eby said. “British Columbia will be introducing a law before April 1 that ensures British Columbians don’t have to pay that increase.” He went further, pledging that his party would work toward fully scrapping the consumer carbon tax altogether.
British Columbia’s Carbon Tax: A Policy Reversal
B.C. was the first jurisdiction in Canada to implement a carbon tax, launching the policy in 2008 under then-Premier Gordon Campbell and the centre-right B.C. Liberals. Initially set at $10 per tonne of carbon dioxide emissions, the tax was designed to be revenue-neutral, meaning costs were offset by refunds to lower-income residents.
At the time, the New Democratic Party (NDP), which now governs B.C., strongly opposed the tax. The party campaigned on an “Axe the Tax” platform, arguing that it would harm job growth. However, after failing to win the election, the NDP ultimately reversed its position, keeping the tax intact when it formed government in 2017.
Over the years, economists praised the tax for successfully reducing emissions while allowing economic growth to continue. Public support remained strong until 2019, when then-Prime Minister Justin Trudeau introduced federal regulations requiring provinces to either impose their own carbon pricing or adhere to national guidelines. This shift sparked controversy, with opposition from the federal Conservatives, led by Pierre Poilievre, who campaigned on the slogan “Axe the Tax.”
Mark Carney, a longtime supporter of carbon pricing, took a different stance during his leadership campaign for the federal Liberal Party. While acknowledging the benefits of such policies, he ultimately deemed the federal carbon tax “too divisive” and vowed to eliminate it if elected.
Eby Aligns with Federal Decision, Targets Big Polluters
During his provincial leadership campaign, Eby had also acknowledged the contentious nature of the carbon tax. He indicated that if the federal requirement were to be removed, he would follow suit by eliminating the provincial consumer tax while shifting the focus toward holding large polluters accountable.
Reiterating this position in Surrey, Eby stated that despite the tax repeal, his government remains committed to fighting climate change. He emphasized that major industries and corporations responsible for high emissions should bear a greater financial burden in addressing environmental concerns.
“The climate crisis is real, and British Columbians are already seeing the devastating impacts—wildfires, droughts, and other natural disasters,” Eby told the audience. “We are determined to make sure big polluters pay their fair share while encouraging investment in pollution-reducing technologies.”
Eby’s plan signals a policy shift toward industry-focused climate action rather than broad-based taxation on consumers. While some environmental groups argue that carbon pricing is an effective tool for reducing emissions, others contend that taxing consumers disproportionately affects lower-income households.
The move to repeal the consumer carbon tax is in line with Carney’s broader national strategy, marking a significant shift in Canada’s approach to climate policy. With B.C. taking legislative steps to mirror the federal repeal, other provinces may follow suit, setting the stage for a new direction in Canada’s fight against climate change.
