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Carney needs to scrap industrial carbon tax to make Canada competitive

Author: Gage Haubrich 2026/08/27

The Canadian Taxpayers Federation is calling on Prime Minister Mark Carney to immediately act on Ontario Premier Doug Ford’s recommendation to remove the industrial carbon tax.

“Carbon taxes make life more expensive and leave Canadian businesses less competitive,” said Gage Haubrich, CTF Prairie Director. “Carney needs to listen to Ford and scrap his costly and economically punishing hidden industrial carbon tax.”

Ford called on Carney to scrap the industrial carbon tax as the United States government imposes tariffs on Canada.

“We need to help our businesses compete and close the gap created by these new tariffs,” said Ford.

The federal government currently imposes an industrial carbon tax on oil and gas, steel and fertilizer businesses, among others

Ford said that the industrial carbon tax costs steel companies hundreds of millions of dollars per year.

The United States doesn’t impose a national carbon tax. More than 70 per cent of countries around the world don’t have a national carbon tax.

“Things like the industrial carbon tax are things that make us uncompetitive,” said Cenovus Energy CEO Jon McKenzie.

Leger polling shows that 68 per cent of Canadians believe businesses pass on most or some of the cost of the industrial carbon tax to consumers.

“Carney’s carbon tax makes survival harder for Canadian businesses that were already struggling before having tariffs slapped onto their products,” Haubrich said. “Carney needs to scrap his carbon tax so entrepreneurs aren’t forced to cut production here and set up south of the border.”


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