Mark Carney has made it clear that as part of continued net zero policies, his government will consider imposing a Carbon Border Adjustment Mechanism (CBAM.) That would be a carbon tariff applied to imports, to support Canadian products burdened by domestic carbon pricing.
Proposed in 2021 and included in the 2024 Fall Economic Statement, the Canadian CBAM is a misguided attempt to shield domestic industries. In response to America’s new tariffs, a CBAM has been proposed to pivot trade to the EU and adopt a European-style CBAM.
