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Canada Eliminates Federal Carbon Levy

Tuesday, 1 April 2025 08:47

By Marcie Culbert @marcieculbert

Canada has eliminated the federal carbon levy that was first introduced by the Trudeau Liberals in 2019.

CANADA - It's the moment lots of people have been waiting for!

As of this morning, Canada officially bid farewell to the federal carbon levy. It was a decision that Mark Carney made last month, as one of his first acts as Prime Minister.

The levy was first introduced by the Trudeau Liberals in 2019, in hopes of bringing down carbon emissions. It recently worked out to 17.6 cents per litre of gas and $4 per gigajoule of natural gas burned for home heating.

The elimination of the carbon tax should be reflected quickly at the pumps, but it officials say it could be offset by swings in gas prices.

Quebec is the only province in Canada with carbon pricing still in effect because it has had a its own cap-and-trade system in place since 2013. Premier Francois Legault said yesterday that Quebec needs to be competitive, but he wants to wait for the outcome of the upcoming federal election.

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