End of BC Carbon Tax Announced: Major Policy Shift Signals New Direction on Climate Strategy

By Jenny Holly Hansen | WBN News | May 1, 2025

In a significant shift to provincial climate and economic policy, Premier David Eby has announced that British Columbia will eliminate its consumer carbon tax by the end of 2025. The move aligns with the federal government’s decision to phase out the national carbon tax, signaling a broader recalibration of Canada’s approach to climate action and affordability.

The announcement was made during a press conference at the B.C. Legislature, where Premier Eby cited rising cost-of-living pressures and the need for a more balanced, regionally responsive climate strategy as key reasons for the change.

“British Columbians are feeling the strain of global inflation, high fuel costs, and economic uncertainty,” said Eby. “We are committed to reducing emissions—but we also need to make life more affordable for families and businesses. Ending the consumer carbon tax allows us to shift toward policies that are more targeted, transparent, and effective.”

British Columbia introduced North America’s first broad-based carbon tax in 2008, gaining international praise for its revenue-neutral design and relatively consistent emissions pricing. However, public concern has grown in recent years about its financial burden on households and small businesses—particularly in rural and northern communities where alternatives to fossil fuels remain limited.

With this policy reversal, the provincial government has pledged to reinvest in clean technology programs, public transit expansion, and incentives for low-emission vehicles and home retrofits. A new framework is expected to be unveiled in early 2026, focused on performance-based emissions reductions and industrial accountability.

Environmental groups have voiced concern that removing the carbon tax may weaken the province’s climate leadership. However, business organizations and industry stakeholders have largely welcomed the decision, saying it provides relief during a time of economic challenge.

As British Columbia transitions away from its long-standing carbon tax model, the focus now turns to what replaces it—and how the province will continue to meet its climate goals while ensuring economic resilience.

Let’s Keep Talking:

Jenny is a business insurance broker with Waypoint Insurance.

She is also a business development consultant with Impresario Partners, helping Canadian Business expand overseas.

She can be reached at 604-317-6755 or jholly-hansen@wbnn.news. Connect with Jenny on LinkedIn at https://www.linkedin.com/in/jenny-holly-hansen-365b691b/.  Connect with Jenny at BlueSky: https://bsky.app/profile/jennyhollyhansen.bsky.social

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Jenny Holly Hansen is a cohost with Chris Sturges of the Langley Impact Networking Group. You are welcome to join us on Thursday’s from 4pm to 6pm at: Sidebar Bar and Grill: 100b - 20018 83A Avenue, Langley, BC V2Y 3R4

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