Canada: federal government to eliminate consumer carbon tax in April 2025

On March 15, 2025, the newly elected Prime Minister of Canada announced the removal of the federal consumer carbon tax. Effective April 1, 2025, the fuel charge will be reduced to zero. Initially introduced in 2019 and designed to increase annually until 2030, the tax applied to various fuels, including gasoline, diesel, natural gas and propane. The removal of the fuel charge will apply in eight provinces and two territories where the federal system was in place: Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, as well as Yukon and Nunavut. British Columbia and Quebec operate their own provincial carbon pricing systems that meet or exceed federal