It’s been nearly 17 years since British Columbia launched the first broad-based, revenue-neutral carbon tax in North America. This was an initiative I promoted as environment minister as part of B.C.’s climate action plan.
Now, on Earth Day 2025, the political landscape is scarcely recognizable.
B.C.’s consumer carbon tax has been abolished—taking with it a sizeable revenue stream, but more importantly highlighting how the shifting winds of politics can alter even the most firmly established policy.
The decision to do away with the carbon tax reflects deeper tensions in our broader climate and economic narrative. For all our earnest efforts to reduce emissions through fiscal tools, we live in a time where political imperatives override policy ideals.
That point is driven home daily by the current occupant of the White House. President Donald Trump, having been re-elected, wants to pursue domestic energy expansion while withdrawing the United States from multilateral climate accords, casting long shadows on international cooperation.
British Columbia is not immune to changing policies. Recently, our provincial government relaxed the timing of net-zero emissions regulations for new liquefied natural gas (LNG) facilities, a move intended to clear obstacles for projects that will help displace higher-emission fuels like coal in other parts of the world, while creating jobs and tax revenue here.
Critics argue this rolls back environmental progress, but internal B.C. government documents highlight logistical and financial hurdles that must be overcome to construct “green” transmission lines into remote areas, including a shortage of electricity.
In essence, perfection – especially in a region as vast and challenging as B.C. – has proven elusive.
Canada faces multiple energy challenges
The province’s recalibrated standards for LNG projects are a nod to the complexities of advancing sustainable energy in a global context. It is precisely this tension between environmental ideals and real-world demands that has occupied much of my time since becoming chair of the Energy Futures Institute in 2023.
While public policies push our communities toward accelerated decarbonization, the truth remains that billions of people, both in Canada and worldwide, continue to rely on traditional forms of energy, namely oil and natural gas. Intermittent sources of energy, such as wind and solar, are not enough; society needs stable, responsibly produced energy to power industry, heat and cool homes, and sustain livelihoods.
Canada also now finds itself challenged on additional fronts.
U.S. tariffs undermine B.C.’s number one export market, while President Trump’s self-styled “America First” approach has emboldened Washington to expand domestic energy infrastructure at breakneck speed.
Will Canadians watch from the sidelines, relinquishing our place in the North American energy landscape? Or will we rise to the competition, developing our resources responsibly to ensure economic resilience, especially in places where well-regulated projects can bring vital investment and jobs?
Climate action versus secure energy production
As we mark another Earth Day, there are competing narratives about the need for swift climate action and the pragmatic necessity of building a secure, modern energy framework.
Intermittent energy sources, like wind and solar power, are playing an important role in providing additional electricity. But they need to be “firmed up” so energy is available even when the sun and wind aren’t.
Keep in mind that electricity only represents about 17 per cent of our energy needs in British Columbia – the vast majority currently comes from fossil fuels. And for the past couple of years, B.C. has relied on imported electricity to meet one fifth of our power needs, much of which comes from fossil fuel generation.
As well, imports of electricity from the U.S. are continuing this year, with up to twice the maximum output of the Site C dam imported over the Easter weekend.
Natural gas helps bridge the gaps in intermittent energy production, when large-scale hydroelectric reservoirs aren’t available, or where more than four hours of backup power (that utility-scale batteries can provide) are required. That’s because natural gas is a dispatchable energy source that doesn’t depend on the weather.
Governments must balance economy, politics and environment
At Energy Futures, we have advocated for pilot projects to test carbon capture innovations and improve methane-leak detection in natural gas production. We’ve called for governments to get behind geothermal and next-generation nuclear technology.
These are not pie-in-the-sky concepts. They are essential components of a balanced energy strategy that can lower emissions, while accommodating growth.
On this Earth Day, let’s accept that environmental policy will never be divorced from politics. We must learn to work within those limitations, leveraging the best technology to forge pragmatic solutions.
Meanwhile, I remain hopeful.
I’m hopeful that Canada, and British Columbia in particular, can thread this needle: balancing economic development and political pressures with our responsibility to protect the planet for future generations. In other words, we can tackle the energy tri-lemma, providing a future that is reliable, sustainable and affordable.
B.C.’s carbon tax may be gone, but the underlying principle remains. We have to pay attention to the real costs of emissions, whether or not they show up as a separate line item on our fuel bill.