Introduction

Since the Liberal government implemented low-carbon policies, federal parties in Canada have adopted varying positions on the issue. While some support the carbon tax, they differ on its effectiveness and the appropriate rate of annual price increases per tonne.

The Liberals’ recently proposed oil and gas emissions cap has also resulted in further debate. While the party argues it will help Canada meet its emissions targets, other federal parties are skeptical about its efficacy.

In addition to the carbon tax and emissions cap, federal parties have engaged in discussions about leveraging technology and innovation to address carbon emissions and tackle the climate crisis.

Carbon Tax

The Liberal Party of Canada introduced the federal carbon tax in 2019 under the Greenhouse Gas Pollution Pricing Act, starting at $20 per tonne. The tax increased by $10 per tonne annually until 2022, reaching $50 per tonne. From 2023 to 2030, it will rise by $15 per tonne each year, aiming for $170 per tonne by 2030 (As described in https://www.cbc.ca/news/climate/carbon-tax-controversy-1.7151551).

đź”— Greenhouse Gas Pollution Pricing Act in full: https://laws-lois.justice.gc.ca/eng/acts/g-11.55/page-1.html

In their 2021 platform, the Green Party proposed raising the carbon tax by $25 per tonne annually from 2022 to 2030, to a total of $275 per tonne. To support Canadian businesses, they advocated for introducing a Carbon Border Agreement, designed to prevent competitive disadvantages for companies subject to the tax. The Greens believe this measure would position Canada as a global leader in reducing carbon emissions (Party Platform in https://www.greenparty.ca/sites/default/files/gpc_platform_en_v-02.pdf.)

The New Democratic Party (NDP) promises to maintain the carbon tax, while eliminating “loopholes this Liberal government has given to big polluters” (Found under party’s climate policy page in “Taking climate leadership and getting to net-zero”, https://www.ndp.ca/climate-action).

The Bloc Québécois supports the carbon tax. In 2019, they encouraged increasing the tax to $30 per tonne, with increases up to $200 per tonne in 2030. Unlike the Liberals, Greens, and NDP, they stipulate that this carbon tax would only apply to provinces that have higher than average emissions per capita. This would prevent Quebec from requiring a carbon tax (Under carbon tax in CBC overview https://newsinteractives.cbc.ca/elections/federal/2019/party-platforms/).

The Conservative Party of Canada has opposed the federal carbon tax or a cap and trade alternative. In the party’s policy declaration, they advocate for provinces to establish “their own climate change policies, without federal interference or federal penalties or incentives” (https://cpcassets.conservative.ca/wp-content/uploads/2023/11/23175001/990863517f7a575.pdf).

The People’s Party of Canada rejects a federal carbon tax. Similarly to the Conservatives, they would allow provinces to determine their own carbon policies (https://www.peoplespartyofcanada.ca/issues/environment).

Emissions Cap

The Liberal Party has introduced an oil and gas emissions cap to lower greenhouse gas emissions in the sector, while ensuring economic competitiveness. The cap would reduce a third of the industry’s current emissions by 2030. This policy would integrate a cap-and-trade system. The policy will also involve reducing methane emissions in the industry by 75% prior to 2030 (Cited in National Observer, https://www.nationalobserver.com/2024/11/05/news/liberals-oil-gas-pollution-cap-critics-legal-action).

The NDP have advocated for “real-time monitoring and leakage detection” to decrease the levels of methane emissions (Found under party’s climate policy page in “Taking climate leadership and getting to net-zero”, https://www.ndp.ca/climate-action).

The Green Party is critical of the current oil and gas emission cap policy introduced by the Liberal government. The party claims that the policy is “too abstract”. With the current framework, the Greens state that it is unlikely the Liberal government can reach their 2030 goals (https://www.greenparty.ca/en/media-release/2023-12-07/green-party-deplores-lack-seriousness-liberal-governments-oil-and-gas).

The Bloc Québécois have criticized the proposed oil cap for being delayed. The party states that the policy would need stronger regulations to be effective at decreasing emissions by oil and gas companies (https://www.nationalobserver.com/2024/11/05/news/liberals-oil-gas-pollution-cap-critics-legal-action).