OTTAWA — Prime Minister Mark Carney announced the end of the consumer carbon price on March 17, 2025, a move that has reignited the political debate surrounding carbon pricing in Canada. His signing ceremony, which allowed media to witness the act, sparked controversy as critics questioned the legitimacy of the document he signed.

During the cabinet meeting, Carney dramatically opened a document in a red folder and signed it, stating, “It’s my honour, on behalf of my colleagues, to sign this,” which was followed by applause from the cabinet. This display, reminiscent of U.S. President Donald Trump’s executive order signings, drew skepticism, particularly from Conservative members who suggested that the document had no legal standing.

Guy Giorno, a former chief of staff to Prime Minister Stephen Harper, publicly criticized the signing on social media, asserting that the document “has no legal effect.” Conservative MP Michelle Rempel Garner disparaged the document, claiming it “isn’t worth the Sharpie it’s signed with,” asserting that while Carney presented it as a significant action, the carbon tax still remained intact.

In defense of Carney, Tyler Meredith, a senior fellow at the University of Toronto’s Munk School, clarified the nature of the document, stating it was a “record of decision” serving as the first step in formalizing policy changes. Following the signing, an official order-in-council was published online, establishing that fuel charge rates would be set to zero after March 31, 2025. This order-in-council, signed by the governor general, constitutes the legal measure that enforces the policy change.

Meredith noted that by conducting the signing ceremony in such a public manner, Carney aimed to provide evidence that a policy shift had occurred, likely in an effort to preempt any conspiracy theories regarding the effectiveness of the announcement. He argued that the swift publication of the order-in-council indicated that government departments had effectively prepared for this transition.

Giorno later acknowledged the order-in-council's publication, underlining it as a crucial legal step in the process. The consumer and industrial carbon pricing frameworks were initially established through the Greenhouse Gas Pollution Pricing Act passed in 2018. Conservative MP Michael Barrett criticized the Prime Minister's actions, stating that Carney cannot repeal the legislation without a parliamentary vote.

Despite this, the Carney administration plans to abolish the carbon price for households and smaller businesses, while leaving the industrial carbon price in effect for larger emitters like oil companies and gas power plants. As Parliament is scheduled to reconvene on March 24, the opposition parties have indicated intentions to challenge the government, leading to speculation that Carney may call for a federal election before that date.

The consumer carbon pricing policy has faced significant opposition from Conservatives under their “axe the tax” campaign, particularly during the leadership of Pierre Poilievre. Nonetheless, recent polling indicates a resurgence in support for the Liberal Party, suggesting a shift in public opinion. Barrett expressed concern that without formally repealing the legislation, Carney could reinstate the carbon tax post-election.

Meredith stated that eliminating the carbon price aligns with the “very clear will” of Canadians, a consensus that has reportedly emerged within the Liberal party and among the electorate. He suggests that the retail aspect of the carbon pricing system is unlikely to return, reflecting a broader shift in policy and public sentiment.

This report by The Canadian Press details the complexities surrounding the carbon tax's future in Canada and the political implications of Carney's recent actions.