Chrystia Freeland and former Bank of Canada governor Mark Carney said they would scrap the federal carbon tax on consumer goods if they become the leader of the Liberal Party.
Their statements drew a swift response from Prime Minister Justin Trudeau, who defended his government’s current carbon tax policy.
“We only have to look at wildfires in California and the rising costs of climate change,” Trudeau told reporters in Windsor, Ontario.
Trudeau said Canada must continue to decarbonize to create jobs and prosperity “for people right across the country and indeed around the world.”
He pointed out his government’s record, including the carbon tax, which he called a “price on pollution.”
Trudeau stressed that it also offers rebates that put “more money in the pockets of eight out of 10 Canadians.”
The prime minister described his approach as a way of protecting future generations while ensuring economic growth.
Freeland and Carney have suggested that removing the consumer carbon tax would ease household financial burdens while still allowing for strong action on climate change.
“Obviously, people running in elections and running for the leadership will be able to put forward their own ideas,” said Trudeau.
This policy marks a significant shift in the Liberal leadership race, setting the stage for a debate on whether to prioritize direct consumer relief or continue with the current carbon tax.
While Liberals and Canadians consider their options, Trudeau remains “very proud” of his record and insists that fighting climate change can be a complement to growing the economy.
