B.C. ends consumer carbon tax, facing $1.8 billion shortfall

British Columbia is preparing to eliminate its consumer carbon tax, leading to a potential $1.8 billion shortfall in the provincial budget. The change follows the new Prime Minister Mark Carney's decision to scrap the federal requirement for a carbon price. Energy Minister Adrian Dix confirmed legislation to remove B.C.'s carbon price will be introduced before March 31, following the government's pledge to respond to federal changes. The consumer carbon tax was expected to generate $2.8 billion this year, with about $1 billion returned to residents through the Climate Action Tax Credit. When asked about how the province will address this budget gap, Dix said further details would come from the finance minister. Premier David Eby suggested that large greenhouse gas emitters would continue to contribute to the budget, implying a focus on maintaining an industrial carbon price. Experts argue that keeping the industrial carbon price in place would effectively reduce emissions and keep B.C. competitive in global markets, especially with partners like the European Union rigorously assessing carbon intensity. However, concerns have been raised that raising these prices too high could drive businesses to relocate to areas with fewer restrictions, especially given the current state of the global economy. As the government navigates this financial challenge, consumers can expect a decrease in the prices of certain energy products, like gasoline and home heating fuels, as the tax is phased out. Political scientists believe the focus may now shift to the industrial carbon price amid discussions about upcoming federal elections.