The Canadian government has signed a decree to effectively remove the carbon tax as of 1 April 2025. The tax (applicable to fuels such as gasoline, diesel, natural gas and propane) will remain in place, although it’s applicable charge rates will be set to zero, while the federal government seeks to refocus federal carbon pollution pricing requirements to ensure that carbon pricing systems are in place across Canada on a broad range of GHG from industry. The rebate should also impact electricity rates as carbon pricing is applied to natural gas-fired electricity generation. Eligible Canadians are still slated to receive the Canada Carbon Rebate (carbon tax rebate) in mid-April 2025.
The carbon tax affects eight of the country's ten provinces, with British Columbia and Quebec having their own carbon pricing systems. Since the legislation remains in place, there is incertitude about the rebate’s long-term permanency due to the upcoming federal elections.
In 2022, Canada released its “2030 Emissions Reduction Plan: Canada’s Next Steps for Clean Air and a Strong Economy” in which it establishes its goal to reach 40% below 2005 national emissions levels by 2030.
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