Federal government removing the consumer carbon price
Mar. 26, 2025
Global Korean Post
–
The Government of Canada has made regulations that cease the application of the federal fuel charge, effective April 1, 2025, and is also removing requirements for provinces and territories to have a consumer-facing carbon price as of that date.
These actions refocus federal carbon pollution pricing standards on ensuring carbon pricing systems are in place across Canada on a broad range of greenhouse gas emissions from industry.
A price on pollution for large emitters will continue to be a pillar of Canada’s plan to build a strong economy and greener future. It is a system that is fair and effective.
The federal fuel charge currently applies in Newfoundland and Labrador, Prince Edward Island, Nova Scotia, New Brunswick, Ontario, Manitoba, Saskatchewan, Alberta, Nunavut and Yukon (referred to as listed provinces). Under the Greenhouse Gas Pollution Pricing Act, the fuel charge generally applies to 21 fossil fuels and combustible waste upon delivery, importation or use in listed provinces.
The federal government removed the fuel charge, effective April 1, 2025, via regulations. It will also be considering broader amendments to the Greenhouse Gas Pollution Pricing Act, including proposed amendments to complete the orderly wind-down of the fuel charge.
After March 31, 2025, the applicable fuel charge rates for all types of fuel and for combustible waste will be set to zero. Therefore, beginning on April 1, 2025, the fuel charge ceases to apply.
