Vancouver is set to introduce a new “Second Carbon Tax” on commercial buildings. Starting in 2026, building owners will face fines of $350 for every tonne of CO₂ emissions above the city’s limit, which could add up to thousands of dollars in extra costs annually. Some buildings could see bills as high as $14,000 a year, according to one of our members
Vancouver would become the first city in Canada to add an annual carbon tax to building operating permits, but it likely won’t be the last as other municipalities may follow suit. Businesses in BC’s 20 largest municipalities already pay three times more in property taxes than residents do. These additional costs won’t just hit landlords, they’ll almost certainly be passed on to tenants, meaning small businesses could face steep rent hikes at a time when they’re already dealing with high inflation, rising property taxes, and an uncertain economy.
That’s why we’ve launched a petition to stand up for small businesses, stop this tax in Vancouver, and prevent it from spreading elsewhere.
How will this tax impact small businesses?
New costs for building owners mean higher operating costs that may be passed on to tenants via rent increases . These extra expenses could force businesses to raise prices, struggle to compete, or even close their doors. Some may decide to leave Vancouver altogether to avoid the added burden. All of this comes at a time when small businesses are already facing labour shortages, trade disruptions, and razor-thin profit margins. Ultimately, this tax could drive investment away from Vancouver and set a costly example that other cities might follow.
What are we doing to support small businesses?
In addition to our petition, we’re working with BC CADE and the BC Restaurant and Foodservices Association to oppose this “Second Carbon Tax.” We’re urging Vancouver City Council to cancel the tax and instead focus on incentives that help businesses improve energy efficiency.
The timing couldn’t be worse to introduce new and unnecessary costs on small businesses, especially since the provincial and federal governments have recently rolled back consumer carbon taxes . Many small businesses still aren’t aware this tax is coming, and won’t be able to afford it when it does. There’s still time for Vancouver to do the right thing and axe its municipal carbon tax. Sign the petition today!
If this kind of advocacy sounds like something that could help your business thrive, consider becoming a CFIB member today.
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