Pricing pollution: how it will work

Canadians are already feeling the costs of a changing climate in the floods, drought, wildfires, and record-breaking heatwaves across our country. Climate change is having a real impact on Canadians, on our health and our communities. Making sure there is a price on carbon pollution is an important part of the Government of Canada’s climate action plan. We’re putting a price on what we don’t want, pollution, so that we can have more of what we do want — lower emissions, cleaner air, a healthier environment, and opportunities for businesses with clean solutions.

Climate change is our biggest challenge, but it is also one of our biggest opportunities. By investing in clean solutions today, we can create the jobs of tomorrow and protect the environment for our kids and grandkids.

Each province and territory will have its own unique way of pricing carbon pollution. Find out which system will be in place where you live:

• Alberta
• British Columbia
• Manitoba
• New Brunswick
• Newfoundland and Labrador
• Northwest Territories
• Nova Scotia
• Nunavut
• Ontario
• Prince Edward Island
• Quebec
• Saskatchewan
• Yukon

More information

News releases

• Year in review: Canada’s climate plan delivering results (December 20, 2018)
  
• Government of Canada fighting climate change with price on pollution (October 23,2018)
• Department of Finance Announcing Climate Action Incentive Payments and Launch of Fuel Charge Consultations (October 23, 2018)

Overview

• How we’re putting a price on pollution
• How the price on pollution works for big industry
• Economic impact of pollution pricing (October 23, 2018)
• Transparency and projected proceeds (October 23, 2018)
• Pollution pricing: technical briefing (October 23, 2018)

Regulatory system for large industry: the Output-Based Pricing System

• Output-Based Pricing System (OBPS)
• Regulatory backgrounder: Federal Output-Based Pricing System (October 2018)
  
• Technical backgrounder: update on the output-based pricing system (July 2018)
• Compliance options under the federal output-based pricing system (May 2018)
• Regulatory framework for the output-based pricing system (January 2018)
• Technical paper: federal carbon pricing backstop (May 2017)

Fuel charge

• Fuel charge rates in listed provinces and territories
• Targeted Relief for Farmers and Fishers, and Residents of Rural and Remote Communities

Supporting businesses and communities

• Support for small and medium-sized businesses
• Climate Action and Indigenous Peoples
  
• Support for municipalities, universities, schools, hospitals, non-profits and Indigenous communities

Guidance

• Supplemental benchmark guidance (December 2017)
• Guidance on carbon pollution pricing benchmark (August 2017)
• Pan-Canadian Approach to Carbon Pricing (October 2016)

Related links

• Clean Fuel Standard
• Greenhouse gas and air pollutant emissions projections: 2018
• Clean Canada: protecting the environment and growing our economy
• Pan-Canadian Framework on Clean Growth and Climate Change second annual report
• Clean Fuel Standard regulatory design: summary
• Greenhouse Gas Pollution Pricing Act (Royal Assent on June 21, 2018)
  
• Estimated impacts of the Federal Carbon Pollution Pricing System (April 2018)
• Ministers’ letter to provinces and territories on next steps in pricing carbon pollution (December 2017)