Fulfilling a core campaign promise, Carney eliminated the federal consumer carbon tax on gasoline and home heating in early 2025. Crucially, however, he maintained the industrial carbon pricing framework. While voters celebrated immediate relief at the pumps, economists quickly pointed out the flaw: without strict price-gouging regulations, major industrial polluters and corporations simply passed the costs of the industrial tax down to consumers through higher prices on goods and groceries.
The Carbon Tax Shell Game: Why the Cost Still Flows Downhill
Filed August 23, 2026