Carbon pollution pricing systems across Canada
The Government of Canada has announced changes to Canada’s approach to pricing carbon pollution. Information on this page is subject to change.
Canada has a long history as a leader on carbon pricing, with provinces such as British Columbia (2008), Quebec (2007, 2013) and Alberta (2007) pioneering various types of carbon pricing systems. Since 2019, the Pan Canadian Approach to Pricing Carbon Pollution has ensured carbon pricing is in place at similar levels of stringency across the country while maintaining flexibility for provinces and territories. Provinces and territories can design their own pricing system tailored to their needs as long as it meets federal minimum national stringency standards, also known as the federal ‘benchmark’.
If a province or territory decides not to price pollution, or proposes a system that does not meet these standards, the federal system is put in place. The federal backstop has two parts:
- a regulatory charge on fossil fuels like gasoline and natural gas, known as the fuel charge
- a performance-based system for industries, known as the Output-Based Pricing System
One or both parts can apply in a jurisdiction.
Carbon pollution pricing across Canada
Below are links to web resources on each jurisdiction’s carbon pricing system:
Please be advised that we are continuously updating the list of resources. Certain jurisdictions' systems are currently under development and their web resources may not be available at the moment.
Federal Backstop
Federal backstop
Federal Fuel Charge
Description of system design
Relevant legislation/regulations
Use of proceeds
Measures to mitigate the impacts of carbon pricing on vulnerable populations
- How carbon pricing work
- Canada Carbon Rebate (CCR) for individuals
- Carbon Pollution Pricing Proceeds Programming
- Fuel charge relief
Federal Output-Based Pricing System
Description of system design
Relevant legislation/regulations
- Greenhouse Gas Pollution Pricing Act
- Output-Based Pricing System Regulations
- Canada Gazette, Part 2, Volume 156, Number 12: Canadian Greenhouse Gas Offset Credit System Regulations
Use of proceeds
List of eligible sectors at risk of carbon leakage
- Output-Based Pricing System Regulations (Schedule 1)
- The Policy for recognizing additional industrial activities from sectors at significant risk of carbon leakage and competitiveness impacts (Table 1, Appendix A)
- List of recognized additional industrial activities under the OBPS
Methodologies used to assess carbon leakage risk
- Regulations Amending the Output-Based Pricing System Regulations and the Environmental Violations Administrative Monetary Penalties Regulations
- The Policy for recognizing additional industrial activities from sectors at significant risk of carbon leakage and competitiveness impacts (Appendix A)
List of performance/emissions intensity standards
- Output-Based Pricing System Regulations (Section 37 and Schedule 1)
- List of recognized additional industrial activities under the OBPS (Refer to section 37 of regulations below for implicit standards)
Methodologies used to set performance/intensity standards
- Regulations Amending the Output-Based Pricing System Regulations and the Environmental Violations Administrative Monetary Penalties Regulations
- Output-Based Pricing System Regulations (Section 36(1))
List of registered participants
Under development.
Compliance and market information
Total GHG emissions from facilities and sectors covered under the OBPS
- Greenhouse Gas Pollution Pricing Act: Annual report for 2022
- Greenhouse Gas Pollution Pricing Act: Annual report for 2021
- Greenhouse Gas Pollution Pricing Act: Annual report for 2020
- Greenhouse Gas Pollution Pricing Act: Annual report for 2019
Total number of credits issued by category
- Greenhouse Gas Pollution Pricing Act: Annual report for 2022
- Greenhouse Gas Pollution Pricing Act: Annual report for 2021
- Greenhouse Gas Pollution Pricing Act: Annual report for 2020
- Greenhouse Gas Pollution Pricing Act: Annual report for 2019
Total compensation obligation for all facilities covered under the OBPS
- Greenhouse Gas Pollution Pricing Act: Annual report for 2022
- Greenhouse Gas Pollution Pricing Act: Annual report for 2021
- Greenhouse Gas Pollution Pricing Act: Annual report for 2020
- Greenhouse Gas Pollution Pricing Act: Annual report for 2019
Compliance broken out by method
- Greenhouse Gas Pollution Pricing Act: Annual report for 2022
- Greenhouse Gas Pollution Pricing Act: Annual report for 2021
- Greenhouse Gas Pollution Pricing Act: Annual report for 2020
- Greenhouse Gas Pollution Pricing Act: Annual report for 2019
Credits status
Under development.
Performance credit trading prices
Not reported.
Description of offset system
Offset registry
Total number of offset credits generated and used trading prices
Offset credit trading prices
Not reported.
Alberta
Carbon pricing in Alberta
Fuel Charge
Alberta's Technology Innovation and Emissions Reduction regulation for industrial emitters
Description of system design
Relevant legislation/regulations
- Emissions Management and Climate Resilience Act
- Technology Innovation and Emissions Reduction Regulation
- Alberta Greenhouse Gas Quantification Methodologies
- Standard for Developing Benchmarks
- Quantification of area fugitive emissions at oil sands mines
- Standard for validation, verification and audit
- Ministerial Order 062/2022: Technology Innovation and Emissions Reduction Fund Credit Amount
Use of proceeds
- Emissions Management and Climate Resilience Act (Section 10)
List of eligible sectors at risk of carbon leakage
- Standard for Developing Benchmarks (Section 3.1.2 Tables 2-5)
Methodologies used to assess carbon leakage risk
- Standard for Developing Benchmarks (Section 3.1.2)
List of performance/emissions intensity standards
- Technology Innovation and Emissions Reduction Regulation (Schedule 2 Subsection 2)
- Ministerial Order 08/2024: Technology Innovation and Emissions Reduction Regulation High-Performance Benchmark and Benchmark Unit Order
Methodologies used to set performance/intensity standards
List of registered participants
Not reported.
Compliance and market information
Total GHG emissions from facilities and sectors covered under the OBPS
Total number of credits issued by category
Total compensation obligation for all facilities covered under the OBPS
Compliance broken out by method
Credits status
Performance credit trading prices
Not reported.
Description of offset system
Offset registry
Total number of offset credits generated and used
Offset credit trading prices
Not reported.
British Columbia
Carbon pricing in British Columbia
British Columbia's Carbon Tax
Description of system design
Relevant legislation/regulations
Use of proceeds
- Climate action tax credit - Province of British Columbia
- Climate Change Accountability Report
- Budget 2017 Update (pages 68 and 69)
Measures to mitigate the impacts of carbon pricing on vulnerable populations
BC's Output-Based Pricing System
Description of system design
Relevant legislation/regulations
- Greenhouse Gas Industrial Reporting and Control Act [SBC 2014] Chapter 29
- Greenhouse Gas Emission Reporting Regulation
- BC Carbon Registry Regulation
- Emission Offset Project Regulation
Use of proceeds
- StrongerBC for everyone: Budget and fiscal plan 2023-24 – 2025-26 (pages 80-82)
- British Columbia: Climate action tax credit
- CleanBC Industry Fund
List of eligible sectors at risk of carbon leakage
Methodologies used to assess carbon leakage risk
Not reported.
List of performance/emissions intensity standards
Methodologies used to set performance/emission intensity standards
List of registered participants
Compliance and market information
Total GHG emissions from facilities and sectors covered under the OBPS
Under development.
Total number of credits issued by category
Under development.
Total compensation obligation for all facilities covered under the OBPS
Under development.
Compliance broken out by method
Under development.
Credits status and carbon market activities
Under development.
Performance credit trading prices
Under development.
Description of offset system
Under development.
Offset registry
Total number of offset credit generated and used
Under development.
Offset credit trading prices
Under development.
Manitoba
New Brunswick
Carbon pricing in New Brunswick
Fuel Charge
The federal fuel charge applies in New Brunswick.
New Brunswick's Output-based Pricing System
Description of system design
Relevant legislation/regulations
Use of proceeds from carbon pricing
Under development.
List of eligible sectors at risk of carbon leakage
Methodologies used to assess carbon leakage risk
Methodologies used to set performance/emission intensity standards
List of registered participants
Under development.
Compliance and market information
Total GHG emissions from facilities and sectors covered under the OBPS
Under development.
Total number of credits issued by category
Under development.
Total compensation obligation for all facilities covered under the OBPS
Under development.
Compliance broken out by method
Under development.
Credits status and carbon market activities
Under development.
Performance credit trading prices
Not reported.
Description of offset system
Not applicable.
Total number of offset credit generated and used
Not applicable.
Offset credit trading prices
Not applicable.
Newfoundland and Labrador
Carbon pricing in Newfoundland and Labrador
Fuel Charge
The federal fuel charge applies in Newfoundland and Labrador.
Newfoundland and Labrador's Carbon Pricing System for Large Industry
Description of system design
Relevant legislation/regulations
- Environment and Climate Change: Greenhouse Gas Information
- Office of the Legislative Counsel: Table of Regulations
Use of proceeds
- Environment and Climate Change: Greenhouse Gas Information (Please see “NEWFOUNDLAND AND LABRADOR GREENHOUSE GAS REDUCTION FUND”)
List of eligible sectors at risk of carbon leakage
Not reported.
Methodologies to assess carbon leakage risk
Not reported.
List of performance/emissions intensity standards
Methodology(ies) used to set performance/emission intensity standards
List of registered participants
- Environment and Climate Change: Greenhouse Gas Information
- Management of Greenhouse Gas Act: Greenhouse Gas Reporting Regulation, Reporting Facilities (2016-2023)
Compliance and market information
Total GHG emissions from facilities and sectors covered under the OBPS
- Environment and Climate Change: Greenhouse Gas Information
- Management of Greenhouse Gas Act: Annual Outcomes, Reporting Years 2019 to 2023
- Management of Greenhouse Gas Act: Greenhouse Gas Reporting Regulation, Reporting Facilities (2016-2023)
Total number of credits issued by category
- Environment and Climate Change: Greenhouse Gas Information
- Management of Greenhouse Gas Act: Annual Outcomes, Reporting Years 2019 to 2023
Total compensation obligation for all facilities covered under the OBPS
- Environment and Climate Change: Greenhouse Gas Information
- Management of Greenhouse Gas Act: Annual Outcomes, Reporting Years 2019 to 2023
Compliance broken out by method
- Environment and Climate Change: Greenhouse Gas Information
- Management of Greenhouse Gas Act: Annual Outcomes, Reporting Years 2019 to 2023
Credits status
- Environment and Climate Change: Greenhouse Gas Information
- Management of Greenhouse Gas Act: Annual Outcomes, Reporting Years 2019 to 2023
- Newfoundland and Labrador – Greenhouse Gas Credit Registry
Performance credit trading prices
Not reported.
Description of offset system
Not applicable.
Offset registry
Not applicable.
Total number of offset credits generated and used
Not applicable.
Offset credit trading prices
Not applicable.
Northwest Territories
Carbon pricing in Northwest Territories
Fuel Charge
Description of system design
Relevant legislation/regulations
Use of proceeds
Measures to mitigate the impacts of carbon pricing on vulnerable populations
Output-based Pricing System
Northwest Territories does not have an OBPS for industry.
Compliance and market information
Northwest Territories does not have an OBPS for industry.
Nova Scotia
Carbon pricing in Nova Scotia
Fuel Charge
The federal fuel charge applies in Nova Scotia.
Nova Scotia's Output-based Pricing System for Industry
Description of system design
Relevant legislation/regulations
- Nova Scotia Legislature - Bill 208 - Environment Act (amended)
- Output-Based Pricing System Registration and Opt-in Regulations - Environment Act
- Output-Based Pricing System Reporting and Compliance Regulations – Environment Act
- Output-Based Pricing System Reporting and Compliance Standard
Use of proceeds
Under development.
List of eligible sectors at risk of carbon leakage
- Output-Based Pricing System Reporting and Compliance Standard (Section 5.3 – carbon leakage is assessed by facility)
Methodologies used to assess carbon leakage risk
List of performance/emissions intensity standards
- Output-Based Pricing System Reporting and Compliance Regulations – Environment Act (Schedule A)
- Output-Based Pricing System Reporting and Compliance Standard (Section 5.4 – performance standards are assessed by facility, not sector)
Methodologies used to set performance/intensity standards
- Output-Based Pricing System Reporting and Compliance Regulations – Environment Act (Schedule A)
- Output-Based Pricing System Reporting and Compliance Standard (Section 5.4)
List of registered participants
Compliance and market information
Total GHG emissions from facilities and sectors covered under the OBPS
Under development.
Total number of credits issued by category
Under development.
Total compensation obligation for all facilities covered under the OBPS
Under development.
Compliance broken out by method
Under development.
Credits status
Under development.
Performance credit trading prices
Under development.
Description of offset system
Not applicable.
Offset registry
Not enabled at this time.
Total number of offset credits generated and used
Not applicable.
Offset credit trading prices
Not applicable.
Nunavut
Ontario
Carbon pricing in Ontario
Fuel Charge
The federal fuel charge applies in Ontario.
Ontario's Emissions Performance Standards (EPS)
Description of system design
Relevant legislation/regulations
- O. Reg. 241.19: Greenhouse Gas Emissions Performance Standards
- O. Reg. 390/18: Greenhouse Gas Emissions: Quantification, Reporting and Verification
- Environmental Protection Act, R.S.O. 1990, c. E. 19
- Emissions Performance Standards program (See summary table of “current and past Emissions Performance Standards program requirements”)
Use of proceeds
Under development.
List of eligible sectors at risk of carbon leakage
Methodologies used to assess carbon leakage risk
- Bulletin: Process for adding industrial activities to the Emissions Performance Standards (EPS) Program
- Process for adding industrial activities to the Emissions Performance Standards Program
List of performance/emissions intensity standards
- Emissions Performance Standards program (See “Summary table of current and past Emissions Performance Standards program requirements”)
Methodologies used to set performance/emission intensity standards
- Emissions Performance Standards program (See “Summary table of current and past Emissions Performance Standards program requirements” for latest methodology)
List of registered participants
Compliance and market information
Total GHG emissions from facilities and sectors covered under the OBPS
Total number of credits issued by category
Under development.
Total compensation obligation for all facilities covered under the OBPS
Under development.
Compliance broken out by method
Under development.
Credits status
Under development.
Performance credit trading prices
Not reported.
Description of offset system
Not applicable.
Offset registry
Not applicable.
Total number of offset credits generated and used
Not applicable.
Offset credit trading prices
Not applicable.
Prince Edward Island
Quebec
Carbon pricing in Quebec
Fuel Charge
Not applicable.
Quebec's Cap-and-Trade System
Description of system design
Relevant legislation/regulations
- Q-2, r. 46.1 - Regulation respecting a cap-and-trade system for greenhouse gas emission allowances
- Q-2, r. 15 - Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere
- q-2 - Environment Quality Act
- Documentation - Carbon market (Regulations respecting projects eligibles for the issuance of offset credits)
Use of proceeds
- Le Fonds d'électrification et de changements climatiques (French only)
- Auction Proceeds Allocated to the Electrification and Climate Change Fund
List of eligible sectors at risk of carbon leakage
Methodology(ies) used to assess the carbon leakage risk
List of performance/emissions intensity standards
- Q-2, r. 46.1 - Regulation respecting a cap-and-trade system for greenhouse gas emission allowances (See Part II of Appendix C)
Methodology(ies) used to set performance/emission intensity standards
- Q-2, r. 46.1 - Regulation respecting a cap-and-trade system for greenhouse gas emission allowances (See Part II of Appendix C)
- Calculation Method Used to Determine the Quantity of Emission Units Allocated Free of Charge
List of registered participants
Compliance and market information
Total GHG emissions from entities and sectors covered under the cap-and-trade system
Total number of free emission allowances issued
- Number of free emissions allowances issued (French only)
Total number of emission allowances auctioned and auction prices
- Auctions (see Annual Auction Reserve Price Notice)
Emission allowances and offset status and carbon market activities
- Auction Notices and Results - Carbon market
- Québec and California Auction Current Price History
- Linked California and Québec Cap-and-Trade Programs Compliance Instrument Report (see the section “Emission allowance holding and trading”)
Emission allowances trading prices
- Documentation - Carbon market (See Summary of Transactions)
Description of offset system
Offset registry
Total number of offset credits generated and used
- Register of Offset Credit Projects
- Documentation - Carbon market (see the section “Emission allowance holding and trading”)
Offset credit trading prices
- Documentation - Carbon market (See Summary of Transactions)
Saskatchewan
Carbon pricing in Saskatchewan
Fuel Charge
The federal fuel charge applies in Saskatchewan.
Saskatchewan's Output-Based Performance Standards Program
Description of system design
Relevant legislation/regulations
Use of proceeds
List of eligible sectors at risk of carbon leakage
- Management and Reduction of Greenhouse Gases (Standards and Compliance) Regulations, 2023, M-2.01 Reg 4 (See Appendix 1)
Methodologies to assess carbon leakage risk
Under development.
List of performance/emissions intensity standards
- Management and Reduction of Greenhouse Gases (Standards and Compliance) Regulations, 2023, M-2.01 Reg 4 (See Appendix 1)
Methodology(ies) used to set performance/emission intensity standards
- Climate Resilience in Saskatchewan – Legislation and Regulations (See The Industrial Facility Standard and The Aggregate Facility Standard)
List of registered participants
Not reported.
Compliance and market information
Total GHG emissions from facilities and sectors covered under the OBPS
Under development.
Total number of credits issued by category
Under development.
Total compensation obligation for all facilities covered under the OBPS
Under development.
Compliance broken out by method
Under development.
Credits status
Not reported.
Performance credit trading prices
Not reported.
Description of offset system
Not applicable.
Offset registry
Not applicable.
Total number of offset credits generated and used
Not applicable.
Offset credit trading prices
Not applicable.
Yukon
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