The federal government of Canada approved New Brunswick’s carbon tax scheme. From April 2020, the province will apply its own levy on consumer purchase of fuels like gasoline, natural gas and propane, at CAD30/tCO2eq (US$22.8/tCO2eq) and remove the federal carbon tax. In addition, New Brunswick will reduce its provincial gas tax to offset the carbon levy. New Brunswick submitted its carbon-pricing proposal to Ottawa in October 2019.
Canada's nationwide climate-change strategy includes a carbon tax, which has to be either adopted by the provinces or imposed by the federal government. The tax will rise by CAD10/tCO2eq (around US$7.6/tCO2eq) each year from CAD20/tCO2eq (around US$15.3/tCO2eq) in 2019 to CAD50/tCO2eq (around US$38/tCO2eq) by 2022.
As New Brunswick (0.8 million inhabitants) refused to implement adequate carbon emission pricing plans and to adopt the country-wide CO2 pricing system, the federal "backstop" mechanism applies since April 2019. In July 2019, the province decided to abandon plans to launch its own legal challenge against the Canadian federal carbon tax, considering that this procedure was redundant with the ones launched by the Ontario and Saskatchewan provinces and would be too expensive for taxpayers.
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