There are predictions the political conflict over the national carbon tax is going to “heat up” in the new year.

As Canada moves towards the fifth anniversary of the policy, Prime Minister Justin Trudeau is facing more demands for exemptions, while Conservative leader Pierre Poilievre is pushing to “axe the tax”.

The Business Council of Canada says the political debate over carbon pricing is harmful because it makes the policy “unpredictable”.

The Council says carbon pricing sets a cost then leaves it up to emitters to determine how best to comply.