Industrial carbon pricing

Note

As of May 15, 2026, the federal government is updating the headline price trajectory for all industrial carbon pricing systems in Canada. The headline price trajectory per tonne of CO2 equivalent emissions for all systems is now:  

• $95 in 2026
• $100 in 2027
• $100 in 2028
• $100 in 2029
• $115 in 2030
• $118 in 2031
• $121 in 2032
• $124 in 2033
• $127 in 2034
• $130 in 2035; and
• Escalating 1.5% per year inflationary escalator starting in 2036 and ending at $140 in 2040

Taking into account feedback from provinces, territories, industry and other stakeholders, this trajectory advances climate ambition and grows our economy. By extending to 2040, the new trajectory provides the long-term certainty needed to support major decarbonization projects.

This new trajectory will be part of a full, updated federal benchmark that will be published later in 2026.

The Government of Canada will continue to work with our provincial and territorial partners to ensure all industrial carbon pricing systems are predictable, maximize cost-effective greenhouse gas emissions reductions, and support clean growth investments without adversely affecting competitiveness or leading to carbon leakage.