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Consumer Carbon Price to End Across Canada by April 2025

The Government of Canada has announced that the federal fuel charge on consumers will be removed effective April 1, 2025. This regulatory change is set to eliminate the consumer-facing carbon price required by provinces and territories. The government indicates that this shift emphasizes implementing carbon pricing systems for industrial greenhouse gas emissions across Canada.

As of April 2025, provinces like Ontario will no longer see consumers charged the federal fuel rate. Administrative processes related to the fuel levy will be discontinued, impacting requirements such as facility change notifications for provinces operating under output-based performance management systems.

Further, the Canada Carbon Rebate, initially designed to return collected charges to Canadians, will be phased out with a final installment set for April 2025, based on the 2024 tax filings. The Ministry of Finance is also considering amendments to the Greenhouse Gas Pollution Pricing Act to support this transition, focused on maintaining industry-level carbon pricing controls.

These updates underline a policy change targeting emissions primarily in industrial sectors while ending direct consumer charges.

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