Prime Minister Mark Carney's cabinet terminates consumer carbon price

Carney kills carbon tax

Photo: The Canadian Press

Prime Minister Mark Carney speaks at a news conference following a cabinet swearing in ceremony at Rideau Hall in Ottawa, on Friday, March 14, 2025. THE CANADIAN PRESS/Justin Tang

The Liberal government is immediately ending the consumer carbon price and made the change official during Prime Minister Mark Carney's first cabinet meeting this afternoon.

Carney says people who have been getting a rebate on the carbon price will get one final payment for the next quarter in April.

He signed an order-in-council to make the change official while cameras were in the cabinet room.

Agriculture Minister Kody Blois says he thinks "it's a really good move" because the policy has become very divisive.

He noted the Atlantic Liberal caucus had pushed for changes to the carbon price in the past, and secured a carveout for home heating fuel in 2023.

Carney pledged to end the consumer price during the Liberal leadership race and said he would bolster the industrial price paid by big polluters.

The consumer carbon pricing policy has been deeply unpopular and had been the focus of Conservative attacks on the Liberals for more than two years.