First of all, the plan was very broad, covering construction, industry, transport and the oil and gas sector. The price on carbon was of course the centrepiece though. So the first thing Canada's new government did was eliminate the price on carbon.
That decision was clearly highly problematic, in two ways. I know that people across the country disliked this regulation, but carbon pricing was a way for the government to generate revenue that it could in turn have invested in low-carbon alternatives.
So the federal government made things much harder for itself by eliminating that source of revenue. There are two levers: regulation and investment. Regulation is not very popular, but it is more acceptable when paired with investment. For example, the public is more receptive to measures to eliminate the sale of combustion vehicles if there is also an incentive covering the price difference between those vehicles and electric vehicles.
Finally, the government is hurting us and itself by eliminating the revenue generated by carbon pricing. This directly contradicts the fundamental principle of user pay. We know where the problem lies. It has been identified and well explained; moreover, everyone understands it. So it cannot be resolved unless something is done about it. I think that is a great weakness right now. We have also heard talk about carbon pricing for heavy industry and I hope that promising approach will be part of the government's solution.
