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Freeland plans to scrap carbon tax, replace with system that provinces support: source

Freeland is expected to announce a leadership bid in the coming days

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OTTAWA — Former finance minister Chrystia Freeland has not yet confirmed she will be running in the Liberal leadership contest but is already planning to reverse one of the Trudeau government’s key climate policies she has defended for years.

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A source close to Freeland confirmed the news first reported by CTV News that she plans to scrap the unpopular consumer carbon tax should she be elected Liberal leader.

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“She is ready to make difficult decisions to meet our emissions targets and make sure big polluters pay for their outsized emissions. But she will not fight Canadians on a policy they have been clear they do not support,” said the source in a statement to National Post.

“That’s why Chrystia Freeland will replace the consumer carbon price with a system that will work within our federation and will be developed collaboratively with provinces and territories. She looks forward to working together on fighting the climate crisis.”

With the deadline of Jan. 23 rapidly approaching, Freeland is expected to announce a leadership bid in the coming days. She has already garnered caucus support from Health Minister Mark Holland, Fisheries Minister Diane Lebouthillier and MPs Randy Boissonnault, Ben Carr, Hedy Fry, Kevin Lamoureux and Julie Dabrusin, among others.

On Wednesday, Freeland publicly addressed Liberal supporters on X, saying she was “grateful” for the chance to hear from them and to listen to their ideas.

“I’ll have much more to say very soon!” she wrote.

Freeland’s news that she would scrap the consumer carbon tax came just as former Bank of Canada and Bank of England governor Mark Carney is set to announce on Thursday that he will be running for Liberal leader in a press conference in Edmonton.

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In an interview on “The Daily Show” with Jon Stewart this week, Carney hinted that he would be revisiting the consumer carbon tax as leader in a way that Canadians “are not paying the price” since he argued the vast majority of emissions come from industry.

He did not make his position on the carbon tax any clearer when speaking to reporters in Edmonton.

“I’ve said for a long time that if you were going to take out the carbon tax, you should replace it with something that is at least, if not more effective,” he said.

Carney said he would be presenting a “comprehensive” climate plan in the coming weeks, seemingly taking shots at Freeland and the Conservatives. “It’s the difference between me and some others. I don’t do a little leak, I don’t do a sound bite,” he said.

Speaking to reporters in Windsor, Ont., Prime Minister Justin Trudeau defended his government’s embrace of the consumer carbon price, pointing to the wildfires raging in Los Angeles as an example of the reason to fight climate change.

He nonetheless said the next leader will be able to choose their own policy.

“Obviously, people running in elections or running for the leadership, will be able to put forward their own ideas about how to fight climate change, but I’m very, very proud of our record of standing up and fighting climate change and making life more affordable for Canadians.”

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Environment Minister Steven Guilbeault’s office did not directly react to the main leadership contenders of his party promising to either reverse or change the government’s policy when asked for comment, only saying that he looks forward to “robust leadership.”

“A price on pollution is widely recognized as the most effective way to reduce greenhouse gas emissions, which drive more intense wildfires, droughts, and floods caused by climate change,” said Hermine Landry, press secretary to Guilbeault, in a statement.

“Canada’s approach to pollution pricing not only reduces emissions but also puts money directly back into people’s pockets. Canadians can have both—cleaner air and a stronger economy—and the Canada Carbon Rebate is a cornerstone of our climate plan.”

Natural Resources Minister Jonathan Wilkinson, who is himself still mulling over a potential leadership bid, challenged Freeland and Carney to present their own climate plans during a press conference from Washington D.C. on Thursday.

“I would ask them, how are they doing to fill that gap? Because the climate plan that Canada has is based on making progress towards a target, and the target is aligned with what science tells us,” said Wilkinson.

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The carbon tax – also known as price on carbon – came into effect in 2019 at $20 a tonne and is scheduled to increase $15 each year until it reaches $170 a tonne in 2030.

To offset the costs to individuals and businesses in provinces where it applies, the federal government has been doling out quarterly rebates called the Canada Carbon Rebate, with a supplement for residents living in small and rural communities.

Conservative Leader Pierre Poilievre has been arguing for years that the carbon tax has been increasing the price of food and gas in the midst of an affordability crisis and has been asking for a “carbon tax election” for Canadians to decide if they still want it or not.

On Thursday, Poilievre dismissed the policy changes Carney and Freeland would implement by referring to the “Carney-Freeland-Trudeau Liberal government.”

— With files from Stephanie Taylor and Rahim Mohamed.

National Post
calevesque@postmedia.com

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