Petition To:

The Honorable Prime Minister of Canada,
The Honorable Minister of Finance,
The Honorable Minister of Environment and Climate Change

Petition to Abolish the Industrial Carbon Tax in Canada and Keep the Consumer Carbon Tax Abolished

We, the undersigned, respectfully urge the Government of Canada to abolish the industrial carbon tax and keep the consumer carbon tax abolished, for the following reasons:

1. Canada is Already Net Zero Due to its Forests

Canada is already achieving effective net-zero emissions due to its vast forests and natural carbon sinks, which absorb more carbon than the country emits. Each year, Canada’s forests sequester over 300 million tons of CO₂, offsetting industrial emissions on a national scale.

This absorption exceeds the emissions generated by all of Canada’s heavy industries combined. The billions of trees across the country form one of the largest carbon sinks in the world, serving as a critical natural asset.

Government and independent reports consistently confirm this carbon balance, showing that Canada’s natural ecosystems make additional punitive taxation redundant.

2. Industrial Carbon Taxes Inevitably Increase Consumer Costs

While framed as a tax on industry, the industrial carbon tax is ultimately a tax on Canadians. Businesses must pay higher costs for fuel, transportation, energy, and raw materials, but these costs do not stay within the industrial sector. They are passed directly down the supply chain and end up being paid by consumers in the form of:

Higher grocery bills (food production, processing, and transportation rely heavily on energy and fuel).

Increased utility costs (electricity and heating from natural gas, coal, and oil become more expensive).

Rising transportation prices (higher fuel costs mean higher shipping, airline, and commuting expenses).

Housing and construction inflation (cement, steel, and lumber production become costlier).

Even essential services such as hospitals, schools, and public transportation face rising costs due to the tax, as industries pass expenses to municipal and provincial governments, which then adjust budgets or raise fees.

Thus, the industrial carbon tax functions as a hidden consumer tax, with the public bearing the burden under the guise of industrial responsibility.

3. Forest Carbon Sinks Are Adequate for Emissions Reduction

Canada’s forests are not only vast, but they are also globally recognized as the single largest natural carbon sink per capita. Scientific data shows that forest ecosystems in Canada absorb more CO₂ than Canadian industry produces, making them sufficient to achieve emission reduction goals without industrial carbon taxes.

Challenges such as wildfires and pests can reduce sequestration in some years, but the overall capacity of forests remains net positive. With proper investment in sustainable forest management, reforestation, wildfire prevention, and pest control, sequestration capacity can be expanded significantly, providing a more effective and natural emissions management strategy than taxing industries.

4. The Industrial Carbon Tax is an Ineffective and Redundant Measure

The industrial carbon tax is both ineffective and unnecessary in Canada’s context. It fails to reduce emissions meaningfully and burdens industries despite the fact that Canada’s forests already absorb more carbon than we produce.

Key problems include:

It raises costs without delivering benefits, since Canada is already net zero.

It punishes industry disproportionately, harming sectors vital to the national economy.

It encourages carbon leakage, moving jobs and production abroad to countries with lower standards, without reducing global emissions.

It discourages investment, as companies view Canada as an increasingly expensive jurisdiction in which to operate.

Rather than being a climate solution, the industrial carbon tax is redundant given Canada’s natural balance.

5. The Consumer Carbon Tax Should Remain Abolished

The consumer carbon tax directly raised household costs across Canada. Energy, fuel, food, and transportation all became more expensive, disproportionately harming lower- and middle-income families and rural communities.

Since its removal, Canadians have seen relief in affordability, particularly in essential goods and services. Reintroducing this tax would once again:

Reduce disposable income for families.

Hurt small businesses reliant on affordable transportation.

Exacerbate inflation during already challenging economic conditions.

Keeping the consumer carbon tax abolished is vital to protecting household affordability and ensuring Canadian families are not penalized for necessities they cannot avoid.

6. Risks to Business Competitiveness and Investment

The industrial carbon tax reduces Canada’s global competitiveness, particularly in industries like energy, manufacturing, and agriculture. When domestic costs rise artificially, businesses face pressure to relocate to less-regulated jurisdictions. This results in:

Carbon leakage: emissions are simply shifted overseas instead of reduced globally.

Job losses: Canadian workers in affected industries face layoffs and plant closures.

Lost investment: international companies invest in countries with lower costs, depriving Canada of economic growth and innovation.

This erosion of competitiveness directly threatens Canadian prosperity while failing to reduce emissions at a global level.

7. Policy Alternatives to Taxation

Because Canada is already net zero, punitive taxes are not needed to meet emissions targets. Instead, federal policy should focus on strengthening Canada’s natural advantages and ensuring affordability:

Sustainable forest management: expand sequestration by planting trees, preventing wildfires, and managing pests.

Market-driven incentives: use tax credits and grants to encourage voluntary adoption of clean and efficient technologies, without punishing businesses or consumers.

Sector-specific supports: agriculture, mining, and manufacturing can be modernized through innovation rather than taxation.

Household protections: ensure Canadians do not face unnecessary costs when basic affordability is already strained.

8. What We Are Asking For

We, the undersigned, respectfully request that the Government of Canada:

Abolish the industrial carbon tax to prevent unnecessary economic harm.

Keep the consumer carbon tax abolished to protect affordability.

Recognize Canada’s forests as sufficient natural carbon sinks.

Expand forest management and reforestation programs to enhance sequestration.

Support Canadian industries and families through policies that protect competitiveness and affordability, without redundant taxes.

Conclusion

Canada is already a net zero nation thanks to its forests and natural ecosystems. The industrial carbon tax is redundant, burdensome, and ineffective — raising costs for industry, transferring those costs to consumers, and harming competitiveness without delivering real environmental benefit.

The consumer carbon tax directly harms families, raising the cost of living on essential goods and services. Its removal has improved affordability, and it must remain abolished to protect Canadians.

Canada should rely on its natural strengths, such as forests, and focus on policies that sustain affordability and competitiveness. By abolishing the industrial carbon tax and keeping the consumer carbon tax abolished, Canada can meet environmental goals without imposing unnecessary economic pain on its citizens.

Sources / Citations

Canada’s Greenhouse Gas Emissions and Sinks (2023) – Government of Canada. https://www.canada.ca/en/environment-climate-change/services/environmental-indicators/land-based-greenhouse-gas-emissions-removals.html

Forest Carbon Sequestration in Canada – Nature Canada. https://naturecanada.ca

Forests and Carbon Sequestration in Canada – Canadian Forest Service. https://www.nrcan.gc.ca/science-data/environmental-indicators

Role of Forests in Carbon Sequestration – Canadian Carbon Program. https://carbonprogram.ca

National Greenhouse Gas Inventory for Managed Forests – Natural Resources Canada. https://cfs.cloud.nrcan.gc.ca/statsprofile/carbon/carbon-for-managed-forests.html

Inventory and Land-Use Change – Natural Resources Canada. https://natural-resources.canada.ca/climate-change/forest-carbon/inventory-land-use-change

Nature-Based Climate Solutions: Canada’s Carbon Sink Potential – Canadian Council of Academies. https://www.cclmportal.ca/resource/nature-based-climate-solutions-expert-panel-canadas-carbon-sink-potential

Afforestation/Reforestation Study in Northwestern Boreal Lands – arXiv. https://arxiv.org/abs/2506.03300

Carbon Capture Capacity Estimation at the Boreal Edge – arXiv. https://arxiv.org/abs/2503.12331

Carbon Emissions from Canada’s 2023 Wildfires – Nature. https://www.nature.com

Impact of Carbon Tax on Canadian Consumers – Financial Post. https://financialpost.com

Canada’s Carbon Tax and Its Impact on Small Business – CBC News. https://www.cbc.ca

Economic Impact of Carbon Tax – Global News. https://globalnews.ca

The Effectiveness of Carbon Taxes in Reducing Emissions – Nature Climate Change. https://www.nature.com

Parliamentary Budget Officer – Distributional Impacts of Carbon Pricing. https://www.pbo-dpb.ca

Institute for Research on Public Policy – “Does Emissions Pricing Hurt Affordability?” https://irpp.org

International Energy Agency – Carbon Pricing and Policy Mixes. https://iea.org

Clean Investment Tax Credit – Government of Canada. https://www.canada.ca

Fraser Institute – Competitiveness and Carbon Pricing. https://www.fraserinstitute.org

OECD – Taxing Energy Use in Canada. https://www.oecd.org

Conference Board of Canada – Economic Impacts of Climate Policy. https://www.conferenceboard.ca

Leger Poll: 70% of Canadians Believe Industrial Carbon Tax Costs Paid by Consumers – Epoch Times. https://www.theepochtimes.com/world/70-percent-of-canadians-believe-cost-of-industrial-carbon-tax-paid-by-consumers-survey-5842523

Most Canadians Say Industrial Carbon Tax Drives Up Prices – Western Standard. https://www.westernstandard.news/business/most-canadians-say-industrial-carbon-tax-drives-up-prices/64038

Canada Gasoline Prices Slide on Removal of Consumer Carbon Tax – Reuters. https://www.reuters.com/world/americas/canada-gasoline-prices-slide-removal-consumer-carbon-tax-2025-04-02

Canada’s Disappearing Forests: A Hidden Carbon Bomb – National Observer. https://www.nationalobserver.com/2022/10/13/analysis/canada-disappearing-forests-devastating-hidden-carbon-bomb