Carbon must come with a price, Trudeau says, as Kinew government seeks alternative

Prime Minister Justin Trudeau says Manitoba and other provinces are free to propose alternatives to the federal price on carbon, but must have a "price signal" of their own.

Premier Wab Kinewhopes Manitoba will be given an exemption from the federal carbon tax because of the province's clean hydroelectric grid and investments in carbon-reducing programs.

The Manitoba budget this week offers new incentives for people who buy electric vehicles and those who switch their home heating systems to clean energy.

Kinew said he is developing a plan for the federal government that will show Manitoba can achieve net-zero status on emissions.

Trudeau said he looksforward to seeing the plan, but pollution cannot be free.

Manitoba's former Progressive Conservative government tried to avoid the federal levy through green initiatives and a lower carbon price, but failed to persuade the federal government.

Trudeau was in Winnipeg on Thursday to announce a new, $1.5-billion housing fund designed to help non-profit organizations acquire more rental units across Canada and ensure they remain affordable.