The Canadian Gas Association (CGA) is pleased to see the Government of Canada’s announced proposed pause on the consumer application of the carbon tax, effective April 1, 2025. We are further encouraged by the proposal of the Conservative Party of Canada that would eliminate the carbon tax altogether for Canadian homes, businesses, and industries. This policy would go even further in lowering costs for Canadians and strengthening the economy.
CGA recognizes the role of provinces and territories in designing emissions policy that is tailored to the unique energy realities that exist in each jurisdiction. Sub-national governments, where consumers are put first, can be best suited to address emission reductions in a manner that gives companies and their investors certainty. Federal intervention in areas of provincial energy and environmental jurisdiction has proven to be an ongoing challenge in Canada.
Consumers have been hit hard by high prices and the threat of tariffs serves to compound the affordability challenge facing Canada. Rising energy costs because of emission reduction regulations and taxes have made affordability a growing challenge for households and have put pressure on businesses striving to stay competitive. In most parts of Canada, residential natural gas consumers are paying more carbon taxes than for the natural gas itself, adding hundreds of dollars to the average bill. These rising costs don’t just have an impact on energy prices: they increase the overall cost of living because our entire way of life is dependent on ready access to energy. For Canadian businesses, these costs can have an impact on operations and global competitiveness, making it harder to invest, grow, and create jobs.
Demand for natural gas is strong and growing in Canada, with the fuel accounting for almost 40% of Canada’s energy end use. Demand growth is occurring because natural gas delivers the energy security Canadians need at a cost they can afford. Removing carbon taxes will lower energy costs, making natural gas – and everything that depends on it – more affordable for consumers. With the legislative certainty that there will not be federal carbon taxes, Canadian businesses will be more competitive and better positioned to attract investment.
CGA and its members remain committed to the more than 20 million Canadians who rely on natural gas to heat their homes and fuel their businesses. Our focus will always be on delivering affordable, reliable energy that supports families, strengthens businesses, and helps drive Canada’s economy forward.
For media enquiries or further information, please contact:
Meeta Singh, Director, Communications
MSingh@cga.ca or call 613-601-8474
About the Canadian Gas Association (CGA)
The Canadian Gas Association (CGA) is the voice of Canada’s gas energy delivery industry, including natural gas, renewable natural gas (RNG) and hydrogen. CGA membership includes energy distribution and transmission companies, equipment manufacturers, and suppliers of goods and services to the industry. CGA’s utility members are Canadian-owned and active in eight provinces and one territory. Canadian natural gas delivery industry meets almost 40 per cent of Canada’s energy needs through a network of almost 600,000 kilometres of underground infrastructure. The versatility and resiliency of this infrastructure allow it to deliver an ever-changing gas supply mix to over 7.6 million customer locations, representing approximately two-thirds of Canadians.