Carbon pricing systems across Canada
Canada has a long history as a leader on industrial carbon pricing, with provinces such as Alberta (2007), British Columbia (2008), and Quebec (2007, 2013) pioneering various types of industrial carbon pricing systems.
Since 2019, every province and territory has had an industrial carbon pricing system that meets the same minimum national stringency standards. Provinces and territories can design their own industrial carbon pricing system tailored to their needs as long as it meets federal minimum national stringency standards, also known as the federal ‘benchmark’.
Provinces and territories can design their own industrial carbon pricing system. If they choose not to or if their system that doesn’t meet the national standards, the federal industrial carbon pricing system is put in place.
Carbon pollution pricing across Canada
Long description
Green: Provincial/Territorial system applies
Blue: Federal Output-Based Pricing System (OBPS) for industry applies
Each jurisdiction has a label that indicates which system applies, as stated in the table below.
| Jurisdiction | System that applies |
|---|---|
| Newfoundland and Labrador | Provincial carbon pricing system for industry |
| Nova Scotia | Provincial carbon pricing system for industry |
| Prince Edward Island | Federal OBPS |
| New Brunswick | Provincial carbon pricing system for industry |
| Quebec | Provincial cap-and-trade |
| Ontario | Provincial carbon pricing system for industry |
| Manitoba | Federal OBPS |
| Saskatchewan | Provincial carbon pricing system for industry |
| Alberta | Provincial carbon pricing system for industry |
| British Columbia | Provincial carbon pricing system for industry |
| Yukon | Federal OBPS |
| Northwest Territories | Territorial carbon pricing system for industry |
| Nunavut | Federal OBPS |
Note: Saskatchewan announced it was pausing its carbon pollution pricing system for industry effective April 1, 2025.
Industrial carbon pricing across Canada
Below are links to web resources on each jurisdiction’s industrial 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 Output-Based Pricing System
Federal Output-Based Pricing System
Description of system design
Relevant legislation/regulations
- Greenhouse Gas Pollution Pricing Act
- Output-Based Pricing System Regulations
- 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 the federal offset system
Federal GHG Offset registry
Total number of federal offset credits generated and used
Federal offset credit trading prices
Not reported.
Alberta
Carbon pricing in Alberta
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 TIER
Total number of credits issued by category
Total compensation obligation for all facilities covered under TIER
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
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
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
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
Performance credit trading prices
Under development.
Description of offset system
Offset registry
Total number of offset credits generated and used
Offset credit trading prices
Under development.
Manitoba
New Brunswick
Carbon pricing in New Brunswick
New Brunswick's Output-Based Pricing System
Description of system design
Relevant legislation/regulations
Use of proceeds
List of eligible sectors at risk of carbon leakage
Methodologies used to assess carbon leakage risk
List of performance/emissions intensity standards
- Reduction of Greenhouse Gas Emissions Regulation (Performance Standards for electricity generation)
Methodologies used to set performance/emission 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
Not applicable.
Total number of offset credits generated and used
Not applicable.
Offset credit trading prices
Not applicable.
Newfoundland and Labrador
Carbon pricing 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
Methodologies 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 industrial carbon pricing system
- 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 industrial carbon pricing system
- 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
Northwest Territories Carbon Tax for large emitters
Description of system design
Relevant legislation/regulations
Compliance and market information
Nova Scotia
Carbon pricing in Nova Scotia
Nova Scotia's Output-Based Pricing System for Industry
Description of system design
Relevant legislation/regulations
- Environment Act
- 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
- Environment Act (Section 12ZC (2) – Nova Scotia Climate Change Fund)
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- Performance Standards for electricity generation)
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
Total number of credits issued by category
Total compensation obligation for all facilities covered under the OBPS
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 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
Ontario's Emissions Performance Standards (EPS) program
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
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 industrial carbon pricing system
Total number of credits issued by category
Under development.
Total compensation obligation for all facilities covered under the industrial carbon pricing system
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
Quebec's Cap-and-Trade System for greenhouse gas emission allowances
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
Methodologies 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)
Methodologies 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
- Documentation - Carbon market (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
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)
Methodologies 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.