Energy minister 'committed' to consumer carbon tax as he considers Liberal leadership

Power Play: One-on-one with Jonathan Wilkinson Minister of energy and natural resources explains why he may run for the Liberal leadership and what factors he will base his decision on.

Energy and Natural Resources Minister Jonathan Wilkinson says he would be “committed” to the consumer carbon tax should he become Liberal leader and prime minister, despite the policy’s unpopularity.

“The consumer portion of the carbon price, I will continue to make the argument to Canadians that, actually, it enhances our ability to address climate change, and it does so in a manner that's affordable,” Wilkinson said in an interview with CTV’s Power Play on Wednesday.

As Liberal MPs were meeting in Ottawa on Wednesday to discuss the party’s upcoming leadership race following Prime Minister Justin Trudeau’s resignation, Wilkinson confirmed that he is considering a run for the job.

“I have had a range of caucus and cabinet colleagues who have come to me and asked me to consider running and in that context, I am considering it,” Wilkinson told host Vassy Kapelos. “I've been having conversations with lots of folks. I think it's time that we had a prime minister and a leader of the Liberal party that's a little bit more focused on the economy and on business.”

Wilkinson says he is waiting for leadership race rules to be announced – including what the entrance fee might be – before deciding whether to officially enter his hat into the ring.

“It's important to ensure that there is sufficient support, not only in caucus, but with organizers across the country, to make it reasonable to think that you will be competitive in that race,” Wilkinson said.

Pushback on the tax

The consumer carbon tax came into effect in 2019 under the Trudeau government and has grown to be unpopular amongst Canadians. The Conservatives – who have pledged to “axe the tax” – have used the policy to attack Liberals for years. The tax has also received significant pushback from most premiers, including Liberal Newfoundland and Labrador Premier Andrew Furey, and some Liberal MPs have even expressed that it might be time to reconsider the policy.

This April, the price on carbon is set to increase to $95 a tonne from $80 a tonne in provinces where the federal backstop applies, costing drivers an extra 3.3 cents per litre at the pump. The tax is scheduled to increase another $15 each year until it reaches $170 a tonne in 2030. To offset the cost, Canadians where the backstop applies receive a quarterly payment known as the “Canada Carbon Rebate.”

Asked by Kapelos about the contentious policy, Wilkinson acknowledged it has been “politically a firestorm” but says the federal government is “doing a better job of communicating around the rebate.”

“The numbers actually, from a polling perspective, look a lot different than they did six months ago,” Wilkinson said.

When pushed by Kapelos on the policy and the party’s plummeting approval numbers, Wilkinson reiterated that it is “a mechanism through which you fight climate change.”

“Certainly, there have been challenges from a polling perspective, for the party generally and I think there are a number of causes for that,” Wilkinson said. “I don't think that's singularly linked to the carbon price.”

Cap on greenhouse gas emissions

While Wilkinson says he is “committed” to the consumer carbon tax, he did say he is “open to conversations” about the emissions cap.

Last fall, the government announced draft regulations that would set a cap on greenhouse gas emissions in the oil and gas sector, mandating them to 35 per cent below 2019 levels. The oil and gas sector will have four years to phase in the reduction, but Alberta is calling on Ottawa to scrap the regulations.

“At the end of the day, what I want to see is emissions go down in every sector of the economy that needs to include the oil and gas sector, and I am open to conversations about what tools you use to actually get there,” Wilkinson said.

Wilkinson has been the Minister of Energy and Natural Resources since 2023. He was first elected to represent the riding of North Vancouver-Capilano in 2015 during Trudeau’s first mandate and has previously served as minister of fisheries and minister of environment and climate change.

You can watch the full interview with Energy and Natural Resources Minister Jonathan Wilkinson at the top of this article.