*Update: On March 15, 2025, the Canadian Federal Government announced changes to the consumer carbon tax. Effective April 1, 2025, the carbon tax will be set to $0. This means that after March 31, 2025, the carbon tax will no longer be applied to natural gas usage.
Customers will still see carbon tax charges for usage incurred up to and including March 31, 2025. For usage periods after March 31, 2025, the line-item Carbon Tax will read $0.00. Eligible Canadians will receive a final Canada Carbon Rebate payment starting April 22, 2025.
To learn more about the change to Canada’s carbon tax, click here for our detailed guide.
With a federal election just around the corner, there are many hot-button issues that will be in debate. One of the issues that has been covered extensively by the media has been Canada’s creation of greenhouse emissions and Canada’s commitment to net-zero energy. For years, carbon emissions have been a topic of debate each election cycle, but after a recent summer with record-breaking heatwaves and catastrophic fires, environmental concerns are a key issue for many voting Canadians. As the 2030 deadline imposed by the Paris Agreement draws nearer, how our political parties plan to reach these emission goals can not only significantly impact the climate crisis, but the economy too.
We have broken down the carbon policies of Canada’s main political parties, so you can be informed on one of the biggest issues Canadians are currently facing, and understand where each major political party stands on climate change.
We looked through the environmental and economic policies of the Canadian Progressive Conservatives, The Green Party, the Liberal Party of Canada, and the New Democratic Party to bring you this guide.
The Parties’ Carbon Platforms
The Canadian Progressive Conservatives
The Conservative carbon policy for the upcoming election details both economic and environmental strategies. The Canadian Conservative Party has changed its tone dramatically on the implementation of carbon pricing since a central tenet of its 2019 election campaign was the removal of the carbon tax. The current platform of the Conservatives involves replacing the current Carbon tax installed by the Liberal Party with a new plan.
Under this plan, individual Canadians would pay up to $20 per tonne of greenhouse gas emissions for every time they buy fossil fuels, ranging from gasoline to natural gas. This money would go towards a personal low-carbon savings account, which can be used by Canadians to make decisions that would lead to reduced emissions down the road. Whether that means buying a bicycle or retrofitting a furnace with a more energy-efficient model, you can use this money to improve the energy efficiency of your life.
If elected, the Conservative Party’s carbon policy will aim to balance the fossil fuel economy and the environment. The Conservatives are prepared to continue to significantly invest in energy sectors including Newfoundland and Labrador’s offshore oil industry and get the Trans Mountain pipeline built. However, even if carbon is still an economic pillar of the Conservative policy, there are facets of the policy to reduce emissions. The Conservatives seek to introduce a tax credit that will incentivize the energy sector and other heavy-emission industries to adopt more carbon capture, utilization, and storage technology.
Other strategies that the Conservatives are prepared to introduce include the production of more zero-emission vehicles within Canada and investing in hydrogen fuel cell vehicles. The Conservatives also have plans for upgrading the energy grid, by implementing more smart grid technology and looking forward to clean energies such as nuclear, hydrogen and other renewable energy. The Conservatives have committed themselves to reduce industrial carbon emissions to meet Canada’s 2030 Paris Agreement targets, while still committed to fossil fuel industries across Canada.
Green Party
The Green Party of Canada have long shouldered a commitment to the environment, and their platform in 2021 stays true to the party’s name. If elected, Annamie Paul and the Greens plan to implement a Canadian climate and energy strategy with the intention to invest in the green economy and sustain green economic growth.
The Green Party have many steps outlined in how they might attempt to establish a green economy. This includes the development of a “Sustainable Generations Fund,” that will provide training for tradespeople, invest in apprenticeships, and develop educational facilities. Since the Greens seek to divest from fossil fuels and end all subsidies for the fossil fuel industry, the “Sustainable Generations Fund,” aims to provide training and jobs of industrial trades and fossil fuel workers into the renewable energy sector. The Green’s seek to phase out coal-fired electricity to decarbonize our electricity grid, with the end goal being 100% renewable electricity, Canada-wide. Under green worker training programs, fossil fuel workers like those in the coal industry will see training to allow them to convert into renewable energy industries.
The Green party also hasplans that will reduce the greenhouse emissions of our homes and places of work, including the institution of Canada-wide programs for the retrofitting of all buildings for more energy-efficient buildings. Homeowners would see incentivization to upgrade appliances with the help of home renovation tax credits. Finally, the Green Party is to introduce carbon pricing that is revenue-neutral, with a fee and dividend system that would see all the money collected from the price on carbon back in the pockets of Canadians.
With these plans established, it is the Green Party’s goal to set Canada on track to reduce greenhouse gas emissions by 60 percent by 2030, and to zero by 2050.
Liberal Party of Canada
Justin Trudeau and the Liberal Party of Canada plan to introduce more policies in relation to carbon emissions and the environment if re-elected. Canada’s incumbent party seems to be standing pat on their commitment to their carbon pricing that they implemented through the Greenhouse Gas Pollution Pricing Act that they passed in the fall of 2018. Carbon pricing will rise to $50 per tonne of greenhouse gas emissions in 2022, from $40 per tonne in 2021. The money from the GHGPPA goes towards Climate Action Incentive payments, which are rebates provided during tax season for Canadians, as well as funds going towards businesses, schools, hospitals, and other community funds.
The Liberals have also provided rebates for greener home upgrades and purchases of zero-emission vehicles – which the Liberals will remain committed to if elected. The Liberal Party stands behind their commitments to the environment and their currently implemented policy. However, the Liberal Party has more plans going forward if they get the popular vote this fall.
The Liberals plan to develop a greener, more sustainable economy. Reaching this goal includes investing $2 billion into a Futures Fund for Alberta, Saskatchewan and Newfoundland and Labrador to partner with Canadian communities to create green jobs, introduce “Just Transition” legislation that seeks to get community feedback towards the transition towards a net-zero economy and establish a training centre for the development of skills required for jobs in these clean energy fields.
The Liberal government plans to commit to reaching a net-zero electricity grid by 2035, which has several steps outlined in how they plan to accomplish this goal. These steps include “implementing a Clean Electricity Standard,” offering a selection of tax credits to incentivize the use and development of clean energy, and the introduction of a “Pan-Canadian Grid Council,” partnering with the provinces and territories to convert Canada’s electricity grid into a cost-effective carbon-free system. This includes phasing out coal-fired electricity by 2030 and ending thermal coal exports.
Finally, the Liberals plan to implement legislation to reduce emissions within the oil and gas sector with the ultimate goal of reaching net zero by 2050, with the introduction of 5-year targets by 2025, and reduction of methane emissions by 75% of 2012 levels by 2030.
New Democratic Party
The New Democratic Party’s carbon policy primarily focuses on a commitment to achieving carbon-free energy. On the horizon for Jagmeet Singh and the NDP is the goal to power Canada with net-zero electricity by 2030, with the ultimate goal of accomplishing non-emitting electricity by 2040.
The NDP has committed to maintaining a price on Carbon while adjusting policies favourable to “big polluters” that have not reduced their emissions enough. However, the NDP states that carbon pricing alone will not be enough. With the goal to reduce emissions to 50% of Canada’s 2005 levels by 2030, the NDP have a wide-scoping climate strategy.
The NDP’s plan involves the creation of a “Canadian Climate Bank,” which will seek to invest heavily in renewable and low-carbon sources of energy, smart grid technology, and Canadian-manufactured renewable energy tech. Further commitments to align Canadian crown corporations like the Bank of Canada towards contributing to net zero initiatives and working with provinces to develop a framework for corporate climate accountability.
One big note regarding the NDP’s carbon policy is a refusal to spend “taxpayer money” on oil and gas subsidies, committing themselves to putting public funds for the transition of renewable sources of energy. The NDP also plans to prohibit this reversal by subsequent governments by putting in place legislation that will seek to ban any future subsidies for oil and gas.
The NDP has several additional plans that will either directly or indirectly impact Canada’s carbon and climate strategy. Improving transit in communities across Canada and undertaking a long-term project to retrofit all Canadian buildings by 2050 with the intention of improving the energy efficiency of the day-to-day life of Canadians. With more and more climate risks impacting communities across Canada, the NDP is seeking to create a National Crisis Strategy to help communities reduce and respond to climate risks as they happen.
