Since 2019, every jurisdiction in Canada has had a price on carbon pollution. Canada put its “revenue neutral” price on pollution in 2018. First it was C$20 per ton of emissions, with the understanding it would rise to C$170 by 2030. A government press release describes how putting a price on carbon pollution is widely recognized as the most efficient means to reduce greenhouse gas emissions while also driving innovation.
Canada describes its approach as “flexible” and “ensures consistency and fairness for all Canadians.” Any province or territory can design its own pricing system tailored to local needs, or it can choose the federal pricing system. The federal government sets minimum national stringency standards that all systems must meet to ensure they are comparable and effective in reducing greenhouse gas emissions.
Carbon pollution pricing systems in British Columbia, the Northwest Territories, and Quebec currently continue to meet the federal benchmark stringency requirements. As a result, neither parts of the federal pricing system applies in those jurisdictions. In other jurisdictions, the federal government delivers all proceeds to individuals, families, and businesses through payments and climate action programs. This helps make carbon pricing affordable and enables households to make investments to increase energy efficiency and further reduce emissions.to a carbon tax as part of a toolkit from which US President Biden can draw to pursue his ambitious climate agenda.
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