The Federal governments default arrangement IS revenue neutral. The idea is that any taxes collected will be given back to the province from which it was collected.

It is up to us to make sure our Provincial governments return the money in form a rebate or reduction in other taxes (e.g. income tax).

The intent is to encourage everyone to make more environmentally conscious buying decisions with a tax on carbon (e.g. car, heat, etc) - not to collect new revenues.

In theory this should make electric cars and clean energy more affordable over time.