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The carbon tax is dead. Climate policy doesn’t have to be

The carbon tax looked like it would become a key part of Justin Trudeau's legacy. Now, it might be key to saving it. Photo by Alex Tétreault

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How did the Trudeau government’s signature climate policy turn into a political albatross? As Ernest Hemingway might say: gradually, then suddenly.

Pierre Poilievre’s pledge to “axe the tax” has helped him open up an increasingly massive lead in the polls, while almost every provincial premier — including the last remaining Liberal one, Newfoundland’s Andrew Furey — is now calling for the carbon tax to be paused. Even progressive heavyweights and potential future premiers like Ontario Liberal Leader Bonnie Crombie and Alberta NDP leadership contender Rakhi Pancholi have announced climate plans that don’t include a consumer carbon tax, presumably guided by the assumption that the federal carbon tax won’t be around much longer. If the Trudeau Liberals don’t cut this increasingly heavy political anchor loose, it’s going to drag them even further underwater.

This would be an incredibly bitter pill for the prime minister to swallow. Poilievre would become even more insufferably smug, and he’d spend months serving up the supposed victory to his anti-climate policy supporters. Environment Minister Steven Guilbeault might well follow through on his widely reported threat to quit if the carbon tax is altered again. These are both better outcomes for Trudeau’s Liberals than getting absolutely blitzed in the next election and potentially being reduced to a third- or fourth-place standing in the House of Commons.

It’s also a bitter pill for those of us who care about good climate policy and have spent far too much time over the last few years trying to explain the carbon tax and rebate. That we ever had to do it is, of course, the problem here. The federal government largely abdicated its responsibilities on this front until the last few months, failing even in the most basic aspects of communication.

They couldn’t get the banks to label the rebates consistently or clearly, which should have been the most basic of table stakes here. They never used their clout — and yes, resources — to help Canadians understand exactly how and why the carbon tax worked. And they were far too reluctant to push back against the tidal wave of misinformation coming from any number of official and unofficial conservative sources.

With almost everyone turning on the carbon tax, it's time for Justin Trudeau to make the ultimate political sacrifice. How eliminating the carbon tax could end up saving good climate policy in this country — and maybe even his government.

And then there’s the decision last summer to exempt home heating oil from the carbon tax, one that spelled the end of any chance they might have to defend the policy. That validated the criticism that conservatives had been making, in various degrees of bad faith, ever since Poilievre took over: that the carbon tax was driving the affordability crisis. In granting relief to Atlantic Canadians (and, yes, an equivalent number of Ontarians) from the carbon tax on the basis of its impact on their cost of living, the Liberals effectively surrendered the ground they’d been trying to defend for years.

That ground is now lost. Continuing to wax rhapsodic about the intellectual virtues of carbon pricing isn’t going to help the Liberals recover any of it. Neither will trying to point out the hypocrisy in the Conservative attacks on it and their implicit preference for regulations, as Prime Minister Justin Trudeau did recently. Instead, it’s time for a full strategic retreat — ironically, to the very political territory Trudeau was accusing the Conservatives of occupying.

His government should scrap the consumer portion of the carbon tax and focus instead on the programs and incentives that can help consumers reduce their emissions. It should maintain the industrial carbon tax and proceed with policies like the oil and gas sector emissions cap and clean electricity regulations that put the onus on heavy emitters. It should invite Poilievre and the conservative premiers backing him to protect the oil and gas industry from paying for its pollution. And it should challenge the Conservative Party of Canada to finally come up with its own plan that goes beyond mere slogans and achieves some measure of substance.

This is much steadier ground for the federal government. Trudeau can replace Guilbeault as environment minister with Nate Erskine-Smith, who’s actually shown some talent for spotting and attacking nonsense arguments against climate policy. He can tie Poilievre’s CPC to Danielle Smith and Scott Moe and use their ongoing fealty to oil and gas industry executives and hostility towards climate policy and clean energy as a different kind of political anchor. And he can deprive Poilievre of his favourite political weapon and dull his broader attack around affordability issues.

Trudeau might not have the wherewithal to do any of these things. Governments in Canada tend to die of political fatigue, and his is showing all the signs of needing a long, long nap. He may even want to fall on his carbon tax sword, perhaps thinking that it will somehow escape his own fate the way the GST did a generation before. But if he has one last trick in his political bag that can fundamentally change the political mood the way his pledge to run deficits did in 2015, this is probably it. Kill the carbon tax and live to fight another day. If he plays this card right, Canadians might still get the climate change election we deserve — and his party desperately needs — in 2025.

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