Carney abandons Trudeau climate targets, citing cost and economic harm

Prime Minister Mark Carney has largely dismantled his predecessor's climate change plan, abandoning key emissions targets and arguing the policies were too expensive and harmed economic growth. Carney, a former economic advisor to Justin Trudeau, described the old plan as having "too much regulation, not enough action" with a lot of talk "and then nothing happens." He said the goal of reducing emissions remains, but the plan to get there must change. The Trudeau government had earmarked more than $200 billion to fight climate change, administered by 149 federal agencies. Provincial and territorial spending added an estimated $303 billion through 364 programs, according to data from the Canadian Climate Institute and Navius Research cited by retired energy consultant Robert Lyman. That combined total of at least $503 billion across more than 500 programs cost every Canadian an estimated $12,000, not including municipal spending. As of 2024, the latest government data available, Canada's annual emissions were stalled at 685 million tonnes, which was 10.3% below 2005 levels.

That figure was just a quarter of the way to Trudeau's now-abandoned target of at least a 40% reduction in emissions compared to 2005 levels by 2030. The plan also aimed for at least a 45% reduction by 2035 and net zero by 2050. Carney has scrapped the 2030 and 2035 targets while insisting he remains committed to the 2050 net-zero goal. In a June video on Canada's energy future, Carney said Trudeau's policies, while well-intentioned, became out of date due to rapidly changing geopolitical events.

"The truth is nobody knows how long the global economy will rely on conventional (oil and natural gas) energy," Carney said. "But while it does, as much of that energy as possible should come from Canada … The goal (of reduced emissions) remains the same, but as times have changed we must change our plan to get there. We can’t afford to restrain the growth of an important part of our energy mix, oil and gas, to meet a short-term goal." He argued the old plan was unsustainable and would have been too costly for Canadians struggling with affordability.

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Carney said it would also have let down international partners needing new energy sources and been too divisive for the country. "The old plan was an open opportunity for those people who wish to pull Canada apart both at home and from abroad," he said. His new energy policies include scrapping the consumer carbon tax and oil and gas emission caps, while loosening clean electricity and methane regulations. He is supporting a new oil pipeline from Alberta to B.C. and scrapping electric vehicle mandates, though replacing them with tougher emission standards.

Carney acknowledged these changes will increase Canada's emissions over the short term. The record shows no Canadian government, Liberal or Conservative, has ever met a single emissions target it set for itself going back almost four decades. Carney has said his approach will be different. Trudeau's climate policies were also cited as a major contributor to slow economic growth during his time in office, as measured by real GDP per capita. During the Harper era, real GDP per capita growth was about 0.5% annually, while under Trudeau it was 0.3%.

With files from Toronto Sun