The carbon tax is not created for all

First Nations from coast to coast recently came together for the 45th Assembly of First Nations’ (AFN) annual general assembly, and passed a resolution demanding the Government of Canada provide adequate financial support to mitigate the effects of carbon pricing on First Nations. This national mandate comes after Chiefs of Ontario filed a court case against the federal government in 2023 for creating a carbon tax system that discriminates against First Nations. The court case demands Canada either figure out a way to make the carbon tax fair to First Nations or exempt First Nations from the tax. It also calls for equitable disbursement of the carbon tax rebate, and alternative methods of disbursement other than through the Canada Revenue Agency. It shines a spotlight on the intersection of environmental policy and Indigenous rights, underscoring the need for a more equitable approach to climate action from Canada. Without an adequate resolution, the government risks perpetuating environmental racism against First Nations. Ontario Regional Chief Abram Benedict previously served as the Grand Chief for the Mohawk Council of Akwesasne. Handout photograph Carbon pricing—designed to incentivize individuals to reduce their greenhouse gas emissions by making fossil fuels more expensive—is a cornerstone of this government’s climate strategy. While it aims to promote cleaner energy alternatives across the country, its impact on reserves can be devastating. For many First Nations, carbon pricing exacerbates existing disparities, raises the cost of living in communities facing some of the highest poverty levels in Canada, and hinders our pursuit of sustainable development. First Nations often face higher costs of living due to the remoteness of our communities. Transportation, heating, and electricity expenses are already substantial; the added burden of carbon pricing pushes these costs to crisis levels. The federal government expects our entire population to balance costs by increasing eligibility for the Canada Carbon Rebate. Doing so requires substantial investments many First Nations are unable to make without first addressing the massive infrastructure gaps that exist in our communities due to the government’s historic neglect. Many First Nations are far away from big cities, lack clean drinking water or adequate housing, and rely on diesel for their power. Leapfrogging basic infrastructure needs to create infrastructure for impractical green vehicles is not helpful. Neither is penalizing our communities for being unable to do so. Despite what some political parties are saying about our legal action, this is not a matter of brushing off climate action or simply “axing the tax.” We support these long-overdue efforts—but not at the cost of further marginalizing First Nations who are facing significant pricing pressure. Financial support is not just about alleviating immediate economic pressures; it is also about investing into First Nations so they can be active participants in Canada’s economy. Many First Nations have shown leadership in environmental stewardship and sustainable practices. With appropriate funding, we can expand equity ownership in energy and infrastructure projects that create low-carbon jobs and foster economic independence. The carbon tax—in its current form—is an unjust and broken mechanism that needs to be rethought with greater input from First Nations. True partnership means involving us at every stage, from planning to execution, to ensure our knowledge, perspectives, and priorities are integrated into climate solutions. The AFN’s call for financial support to minimize the effects of carbon pricing on First Nations is a call for fairness, equity, and justice. As Canada strives to meet its climate goals, we will be watching closely to ensure that it does so in a way that creates a future that is sustainable and just. For everyone. Ontario Regional Chief Abram Benedict previously served as the Grand Chief for the Mohawk Council of Akwesasne. Benedict has led several negotiations with federal government partners including two significant land claims that will help advance Akwesasne’s priorities with proceeds of more than $280-million. The Hill Times