Prime Minister Justin Trudeau’s announcement to step down has created a vacuum that will shape the future of Canada’s leadership. This decision has ignited a fierce race for leadership within the Liberal Party, with former Bank of Canada Governor Mark Carney emerging as a key contender. On the other side, Conservative Party Leader Pierre Poilievre stands in stark opposition, ready to challenge the current climate policies.
With the ideological divide between Carney’s progressive climate agenda and Poilievre’s economic-focused stance, Canada’s climate future hangs in the balance. Let’s take a closer look at each of the potential replacements’ climate and net zero stance.
Mark Carney: A Champion of Climate Finance and Global Leadership
Mark Carney’s entry into the political race marks a significant moment for Canada and the global climate movement. Carney’s extensive experience as the Governor of the Bank of Canada, along with his tenure as the UN Special Envoy on Climate Action and Finance, positions him as a leading figure on the international stage.
For years, Carney has been a vocal proponent of transitioning to a net-zero economy. He has been emphasizing the potential for economic growth through climate action.
He often refers to net zero as “the greatest commercial opportunity of our time”, specifically noting in an interview that:
“…And what we have seen increasingly, spurred initially by the Sustainable Development Goals, accelerated by Paris, and then by social movements and governments, is societies putting tremendous value on achieving net zero. Companies, and those who invest in them and lend to them, and who are part of the solution, will be rewarded. Those who are lagging behind and are still part of the problem will be punished.”
He sees it as a way to unlock investment in renewable energy, clean technologies, and sustainable infrastructure.
A recent report by the International Renewable Energy Agency (IRENA) estimates that the global renewable energy market could generate up to $98 trillion in investment by 2050. This presents a significant economic opportunity for countries, like Canada, that choose to embrace green policies.
Carney’s vision for the country aligns with global trends, calling for a balanced approach to climate policy that integrates both environmental and economic goals. His leadership would likely usher in policies focused on scaling up investments in clean energy, carbon capture technologies, and creating more sustainable industries.
Under Carney, Canadians could see the implementation of mandatory carbon disclosure for corporations, helping drive transparency and accountability in the private sector. The UN climate envoy also advocates for leveraging private sector finance to accelerate the transition to a net-zero economy.
Pierre Poilievre: Opposing Carbon Taxes and Prioritizing Affordability
Pierre Poilievre, the current leader of Canada’s Conservative Party, has built his political identity on opposing carbon taxes. He is also questioning the effectiveness of environmental regulations.
With his populist messaging and a strong emphasis on affordability, Poilievre has become a leading figure for those disillusioned by rising costs of living. His “Axe the Tax” campaign resonates with voters who view the carbon tax as an economic burden rather than a solution to climate change. The campaign aimed at eliminating Trudeau’s carbon pricing system.
Per the Canada Taxpayers Federation, the carbon tax under the current system costs an average family of four $1,200 annually. The chart below from the Canadian Energy Centre shows how much it will affect vehicle fuel costs by 2030.
Poilievre’s criticism of the carbon tax is largely driven by concerns over this financial impact. This becomes more paramount as inflationary pressures and cost-of-living concerns continue to grow.
Poilievre’s anti-carbon tax stance has been consistent. He argues that it disproportionately affects working Canadians, driving up the cost of goods and services, particularly in northern communities.
While Poilievre has voiced concern about the economic impact of such policies, he has yet to present a clear and actionable alternative to address climate change. His positions on climate policy, therefore, raise questions about Canada’s ability to meet its emissions reduction targets without strong regulatory frameworks.
Under Poilievre’s leadership, Canada might see a rollback of several key climate policies, including the following:
- carbon tax,
- emissions caps for oil and gas, and
- investments in clean energy technologies.
Analysts think that this would likely distance Canada from international climate commitments, potentially putting the nation at odds with global efforts to mitigate climate change.
A Deepening Divide: What’s at Stake for The Future of Canada’s Climate Policy?
Trudeau’s resignation sets the stage for a new political era. The next leadership race will be pivotal in determining Canada’s climate future.
- According to Environment and Climate Change Canada, the country must reduce emissions by at least 40-45% by 2030 compared to 2005 levels to meet its international commitments.
Carney’s policies would likely drive the investments and regulatory changes necessary to achieve these ambitious goals. On the other hand, Pierre Poilievre’s rise to power could shift Canada’s climate trajectory in a different direction. Prioritizing deregulation and affordability over bold climate action could lead to a retreat from critical environmental commitments.
Moreover, Carney’s proposed policies on climate finance, carbon pricing, and clean energy investments align with global efforts on sustainability. These measures reflect a commitment to both tackling climate change and positioning Canada as a leader in climate finance.
A report from Canada’s Clean Growth Hub reveals that Canada’s renewable energy sector has seen significant growth. It contributes nearly $4.5 billion to the national economy in 2020 alone. Carney’s platform would likely continue to build on this momentum as he noted in his speeches, further bolstering the sector.
In contrast, Poilievre’s carbon pricing opposition prioritizes short-term economic relief for Canadians. While Poilievre’s stance might appeal to those frustrated with rising costs, it lacks a clear strategy for long-term climate solutions.
As the leadership race heats up, Canadians will have to decide which path they want to take: Will the nation take the opportunity to lead in global climate action, or will it retreat from its environmental commitments? The outcome will not only shape Canada’s domestic climate policy but also its role in the global fight against climate change.