Elections in Canada: Does Carney manage to maintain his impressive track record on climate issues?
In a significant political shift, Mark Carney, the former Bank of England governor, has been elected as the Prime Minister of Canada. Carney's climate policies aim to harness economic opportunities in the green transition while applying market-based tools with targeted regulations to reduce emissions, particularly from industry and energy sectors.
One of the key elements of Carney's climate policies is the removal of the federal consumer carbon tax, but maintaining and strengthening carbon pricing on large industrial emitters. This approach is designed to ensure emissions reductions at the source of heavy pollution. A new program is proposed to incentivize green choices for consumers, replacing the previous consumer carbon tax, balancing affordability and environmental goals.
Carney's policies also emphasize the oil industry's decarbonization. By focusing carbon pricing and compliance requirements on large industrial emitters, particularly in the oil and gas sector - identified as the major emissions source in Canada - Carney’s policies could drive significant emission reductions.
The new Prime Minister is also a strong advocate for the electrification of transport. He supports the Trudeau government’s mandate that electric and hybrid vehicles constitute 20% of sales by 2026 and 100% by 2035, signaling a push toward electrification of transport.
In addition, Carney plans to introduce a carbon border adjustment to penalize high-polluting imports, aiming to protect Canadian industries adopting cleaner technologies and prevent carbon leakage. He also intends to embed environmental sustainability and climate integrity into broader economic and security policies, recognizing that Canada's natural assets are strategic economic and ecological assets critical to long-term stability.
The potential impact of these policies on Canada's energy transition and carbon emissions includes driving significant emission reductions in the oil and gas sector, contributing to a cleaner transportation sector, modernizing industrial carbon pricing, and integrating climate considerations in all government priorities.
The Canadian economy currently accounts for around 3% of GDP from the oil and gas industry. Carney's leadership could be beneficial for Canada's climate ambitions and international decarbonisation efforts. His election has been warmly welcomed by environmental campaigners.
However, not everyone is in agreement. Scott, a climate activist, urges the new prime minister to abandon promises around expanding Canada's fossil fuel exports through oil pipelines or LNG, as they would compromise net-zero targets and increase climate pollution.
Research by the Canadian Climate Institute suggests that increasing rates for industrial emitters could enhance the relative competitiveness of low-carbon sectors and help reduce national emissions without consumer price increases.
Carney is expected to enter into a minority government with other parties who have strong climate commitments. Gerald Alain P. Chen-Young, CIO at the National Public Pension Fund Association (NPPFA), views Carney's macroeconomic credentials as a significant advantage.
The Liberal government has also pledged to support an East-West electricity grid to transport low-carbon power from provinces rich in hydropower to regions still reliant on fossil fuels. This move could further accelerate Canada's transition towards a low-carbon economy.
Canada, currently ranked as the 12th largest emitter globally, has a significant role to play in the global fight against climate change. Carney's leadership could be instrumental in positioning Canada as a leader in sustainable economic growth amid climate challenges.
- Mark Carney's climate policies, as Prime Minister of Canada, involve the removal of the federal consumer carbon tax while strengthening carbon pricing on large industrial emitters, demonstrating a focus on environmental-science and policy-and-legislation.
- The new Prime Minister's policies also highlight the oil industry's decarbonization, with carbon pricing and compliance requirements targeted at large industrial emitters, particularly in the oil and gas sector, aiming to address climate-change and reduce emissions.
- In addition to his climate policies, Carney's leadership intends to integrate environmental sustainability and climate integrity into broader economic and security policies, influencing policy-and-legislation and contributing to general-news discussions on the environment.
