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:

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

Federal 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

Methodologies used to set performance/intensity standards

List of registered participants

Under development. 

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 

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

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

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

Measures to mitigate the impacts of carbon pricing on vulnerable populations

BC'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

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

Both parts of the federal backstop apply to 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

Use of proceeds

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

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.

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

Use of proceeds

Under development.

List of eligible sectors at risk of carbon leakage

Methodologies used to assess carbon leakage risk

List of performance/emissions intensity standards

Methodologies used to set performance/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

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

Both parts of the federal backstop apply to 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

Use of proceeds

Under development.

List of eligible sectors at risk of carbon leakage

Methodologies used to assess carbon leakage risk

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

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 

Both parts of the federal backstop apply to 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

Use of proceeds

List of eligible sectors at risk of carbon leakage

Methodology(ies) used to assess the carbon leakage risk

List of performance/emissions intensity standards

Methodology(ies) used to set performance/emission intensity standards

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

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

Emission allowances trading prices

Description of offset system

Offset registry

Total number of offset credits generated and used

Offset credit trading prices

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

Methodologies to assess carbon leakage risk

Under development.

List of performance/emissions intensity standards

Methodology(ies) 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

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 

Both parts of the federal backstop apply to Yukon. 

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