Regulatory backgrounder: federal Output-Based Pricing System

Under the Greenhouse Gas Pollution Pricing Act, the federal carbon pollution pricing system has two parts:

  • a regulatory charge on fuel (federal fuel charge)
  • a regulatory trading system for large industry – the federal Output-Based Pricing System (OBPS)

On October 31, 2018, regulatory instruments on the federal Output-based Pricing System were published in the Canada Gazette, Part II.

These instruments provide detailed information about which industrial facilities are required to register in the federal OBPS. They also set out quantification, reporting and verification requirements.

Registration in the federal Output-based Pricing System

The owner and operator of a facility subject to the federal OBPS must register that facility with Environment and Climate Change Canada. Registration will begin on November 1, 2018.

More details about registration requirements, including guidance material on how to apply for registration are available.

Applications for registration must be submitted using the online registration module accessible through Environment and Climate Change Canada’s Single Window Information Manager.

Draft regulations on the federal OBPS will be published for public comment in fall 2018.

More information

Output-Based Pricing System

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