Poilievre pledges fight of 'carbon tax 2.0' in Parliament’s return

Conservative Leader Pierre Poilievre says he will use Parliament’s looming return to push the Carney government into getting rid of what he’s calling the “carbon tax 2.0” – clean fuel regulations that are already adding several cents to the price of gas across the country.

On Wednesday in Prince Edward Island, as part of an east coast trip, Poilievre said he successfully pushed the federal Liberals to scrap the consumer carbon tax.

Now, he will take aim at clean fuel regulations in Parliament’s September return.

“We are making it a priority to boost take-home pay and reverse the Liberal cost of living crisis by opposing Mark Carney’s carbon tax 2.0,” Poilievre said.

“We want to axe all carbon taxes for good, for real, for everyone, forever.

“We want to increase your purchasing power because we know it’s not just gas and diesel, everything that comes in a truck will be more expensive when you tax fuel.”

The federal government’s clean fuel regulations came into effect in July 2023, requiring gasoline suppliers to gradually reduce the carbon intensity – or the amount of pollution – from the fuels they produce and sell for use in Canada.

The regulations set progressively more stringent annual reduction requirements, forcing refiners to find ways to lower carbon intensity, supply more renewable fuels and biofuels, or pay for credits if they don’t achieve targets.

Poilievre argues that all results in greater costs being passed onto consumers.

Speaking to reporters outside of a gas station in Charlottetown, Poilievre referenced a Parliamentary Budget Officer report that concluded Canada’s Clean Fuel Regulations could increase the price of gasoline by up to 17 cents per litre by 2030.

It was a finding based on data from the federal government’s own Environment and Climate Change Canada.

The PBO’s analysis also found the regulations broadly regressive, with a greater financial impact on lower-income households, and projected a decrease in real GDP by up to 0.3 per cent in 2030.

That equates to $9 billion, it added.

The PBO estimated that the cost would range from 0.62 per cent of disposable income, or $231, for lower-income households to 0.35 per cent of disposable income, or $1,008, for higher income households.

The other political parties have criticized the PBO’s report for ignoring the cost of inaction on climate change in its analysis.

By 2030, the carbon intensity of fuels must fall to 15 per cent below 2016 levels, a target that would deliver 26 million tonnes of greenhouse gas emissions reductions, according to Environment and Climate Change Canada.

The impact of the clean fuel regulations is already being felt particularly hard in Atlantic Canada where the maximum price of gasoline is regulated.

Worried that smaller fuel retailers would see their margins squeezed if refiners charged more for their product while a formula calculating a maximum price stayed the same, the four Atlantic provinces built into the cost of gas a charge for the federal clean fuel standard.

In New Brunswick, the provincial government passed legislation that allowed the cost to be passed onto consumers, changing the price-setting formula for gasoline and other liquid fuels to include a “cost of carbon adjustor” in the province’s Energy and Utilities Board formula.

It’s a cost that fluctuates based, in part, on the current price of the carbon credit market.

That’s increased as of late, resulting currently in an extra 8.77 cents per litre of regular unleaded gas in New Brunswick.

Poilievre said on Wednesday that higher gas prices would continue as long as the fuel standard remains in place.

“They pass it all on,” Poilievre said of refiners. “Bottom line is that the big companies don’t really care all that much because they know the consumer will end up paying the price.

“It’s always the case.”

Poilievre took a victory lap on Wednesday to say that he “forced” Carney on the eve of the federal election earlier this year to abandon the Trudeau government’s price on carbon.

“I did take some satisfaction in winning the debate on the carbon tax,” Poilievre said.

“I led the great Conservative team in an ‘axe the tax’ campaign that everyone dismissed and then had to reverse themselves.”

He now hopes to force movement again.

“This fall, our priorities are very clear,” Poilievre said, stressing a push to give Canadians larger take-home pay, while also reiterating stances to reduce crime, limit immigration, while building a “self-reliant” Canada through energy development.

The House of Commons is slated to return Sept. 15.

Poilievre’s east coast trip included stops in Nova Scotia on Tuesday.

He was also in Prince Edward Island on Wednesday to attend former federal minister and Conservative MP Gail Shea’s funeral.

“I have not met a single person that didn’t love Gail Shea,” Poilievre said.

“She had a big, beautiful heart, and, you know, when I was going through hard times in life I would often call her and she would fill me with encouragement and mentorship and so it’s with great sadness that we lay her to rest today.

“She will be remembered as a great Islander and a great Canadian.”

• Inside Poilievre's long journey back after his Alberta byelection campaign
• Conservatives pull ahead as affordability and cost-of-living concerns grow: poll

Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark nationalpost.com and sign up for our daily newsletter, Posted, here.