British Columbia introduced Canada's first comprehensive carbon tax in 2008, charging a price on carbon emissions from fossil fuels. The tax applies to gasoline, diesel, natural gas, propane, and other fuels, creating a financial incentive to reduce emissions. BC's carbon tax was initially designed to be revenue-neutral, with revenues returned through tax cuts elsewhere. The rate has increased over time and is coordinated with federal carbon pricing requirements. The BC model influenced national carbon pricing policy, demonstrating that carbon taxes can function without destroying the economy—though debates continue about effectiveness, impacts on households and businesses, and adequacy of rates for addressing climate change.