In the lead-up to Canada’s federal election on April 28th, last week’s English and French debates highlighted climate policy as a decisive topic. Although there was no new information regarding the leaders' positions on climate change, they took the opportunity to reiterate their existing positions. Note that Carney has released an official climate platform, while Poilievre has not at the time of writing.
Liberal Party Approach
With the removal of the federal fuel charge, which applied to consumers and anyone not covered by an industrial emitter program, the Liberal government aims to hone in on climate action at the industrial level by strengthening and extending the federal Output-Based Pricing System (OBPS) through 2035. While the OBPS only applies in Manitoba, Prince Edward Island, Yukon, and Nunavut, the government would also refine the carbon pricing benchmark. The benchmark was established to ensure consistency among provinces that chose to implement their own carbon markets by defining specific criteria and minimum carbon pricing standards. Changes to the federal benchmark, scheduled for review in 2026, may require provinces to update their programs accordingly. This could involve adjustments in areas such as pricing, tightening rates, and coverage, among other stringency levers.
During the debate, Prime Minister Mark Carney, the Liberal Party contender who assumed office in March 2025, emphasized his commitment to climate action and affordability, highlighting the recent removal of the federal fuel charge in favour of industrial climate action due to its “divisive” nature. He referenced the need for direct investment to align industrial decarbonization with Canada’s heavy industries, citing the Pathways Alliance Carbon Capture project as a key example. Carney also highlighted Carbon-Border Adjustment Mechanisms (CBAM), arguing that industrial carbon pricing is necessary to maintain competitiveness, especially with the EU, given ongoing trade tensions with the US.
Carney’s climate plan advocates for holding major polluters accountable and incentivizing green alternatives, such as electric vehicles and energy-efficient appliances. Carney also aims to decarbonize federal buildings by 2030 and expedite clean energy project approvals.
During the debate, Conservative leader Pierre Poilievre made numerous comparisons between Carney and former Prime Minister Trudeau, criticizing the Liberal Party’s Bill C-69, An Act to enact the Impact Assessment Act and the Canadian Energy Regulator Act, to amend the Navigation Protection Act and to make consequential amendments to other Act, which Poilievre labeled an “anti-pipeline bill”. He also critiqued Carney’s proposed “double carbon tax”, which was in reference to industrial carbon pricing. Poilievre argued that industrial carbon pricing raises costs for consumers, citing steel used in cars as a specific example, and claimed that this program merely shifts emissions to other locations. As the OBPS is not a tax but a market-based program, this indicates a misrepresentation by Poilievre of the OBPS and market-based carbon programs. Poilievre has made the repeal of the Greenhouse Gas Pollution Pricing Act, which encompasses both the federal fuel charge and the OBPS, a central campaign promise in response to Carney’s removal of the federal fuel charge, which rendered Poilievre’s “Axe the Tax” messaging no longer relevant. He proposes focusing on tax credits for industry and delegating carbon pricing responsibilities to the provinces. While removing the federal backstop does not automatically eliminate carbon pricing across Canada, it would grant full autonomy to the provinces to decide whether or not to continue operating carbon markets. Alberta, which has been operating a carbon market program since 2007, has indicated possible modifications to their Technology Innovation and Emissions Reduction (TIER) program in this event, and Saskatchewan has already announced publicly its intentions to remove all forms of carbon pricing. British Columbia, which just began operating its OBPS, and Quebec, which has been operating its joint Cap-and-Trade with California since 2012, have stated their intent to maintain their programs. Quebec voted unanimously to keep its Cap-and-Trade program following an Executive Order from the Trump administration that directly threatened the California carbon market.
Poilievre's stance has garnered support from several oil and gas CEOs but has raised concerns about the future decarbonization projects reliant on federal carbon pricing stability. He has criticized the carbon tax as an "existential threat to our economy and our way of life," attributing it to increased inflation and financial strain on Canadians.
Towards the end of the debate during the round of rapid-fire questions, Yves-François Blanchet, leader of the Bloc Québécois, was asked whether Quebec should continue implementing a carbon tax. Blanchet correctly clarified that Quebec does not in fact prescribe a direct carbon tax, but that the Cap-and-Trade program, which is linked with California, is a market-based program that allows the market to determine the fair price of emissions reductions. He also reiterated Quebec’s commitment to continuing to implement this program, given that emissions reductions are achieved in less expensive ways compared to the carbon tax, and said that he is “very proud” of the program.
The debate also focused on the broader implications of U.S. politics on Canada's economy. Carney positioned himself as a capable leader in navigating the challenges posed by U.S. President Donald Trump's trade policies, which have previously threatened Canada's economic stability. Poilievre emphasized Canada's sovereignty, stating, "Canada will never be the 51st state. We will be a strong, independent, sovereign country when I’m prime minister." Poilievre criticized the Liberal government's handling of trade issues, asserting that Trump's administration would prefer the Liberals to remain in power to continue exploiting Canada's economy.
Shortly after the debates, the Liberal and NDP parties formally launched their election platforms, with the Conservative platform forthcoming. As the election approaches, the divergent climate policies will significantly influence the nation's approach to climate change and its alignment with international commitments.
ClearBlue will continue to monitor these developments and will provide updates as needed.