OTTAWA—Canada’s Liberal government is scaling back elements of its planned carbon-tax regime to address worries from the business community about global competition.
The amendments to the carbon-tax regime were relayed to business representatives last week, according to two people familiar with the briefing and confirmed by government officials Wednesday. Under the changes, industrial companies would now have fewer of their emissions—20% versus the original 30%—subject to the levy. The carbon tax takes effect next year, and...