Pricing carbon pollution for clean growth


Canada is now a world leader in the fight against climate change. We are taking action to reduce carbon pollution, spark innovation and create jobs. Pricing carbon pollution is broadly recognized as one of the most effective, transparent, and efficient policy approaches to reduce emissions. The vast majority of Canadians already live in a province with carbon pricing.

The Pan-Canadian Framework on Clean Growth and Climate Change outlined a benchmark for pricing carbon pollution by 2018. The goal of this benchmark is to ensure that carbon pricing applies to a broad set of emission sources throughout Canada with increasing stringency over time to reduce GHG emissions at lowest cost to business and consumers and to support innovation and clean growth.

Prime Minister Trudeau delivers a speech on pricing carbon pollution


We’re taking action to fight climate change – right now.

For the first time, the Government of Canada is pricing carbon pollution.

That's the best way to keep our environment clean – and grow a cleaner economy.

Pricing pollution creates incentives for industries to innovate and cut emissions.

That means new, clean tech industries…

Building a strong, clean growth economy…

More middle class jobs…

And cleaner air and water for our families.

It’s time to act now, to protect our planet for future generations.

And putting a #PriceOnCarbon – it’s the right thing to do.

What success will look like

Jean and Lynn

Jean and Lynn are business partners in Prince George, British Columbia. Their company makes electric power tools including chainsaws and snow blowers. They emphasize energy efficiency in designing, building and marketing their products. This saves them money and their brand becomes known for its power, durability and reliability. This helps them expand their sales globally. To keep up with demand they open a second, larger factory next door that is powered by geothermal energy, solar tiles and wind turbines.

Key facts and figures

  • Jurisdictions will choose a system: they can put a direct price on carbon pollution or they can adopt a cap-and-trade system.
  • Pricing will be based on GHG emissions and applied to a common and broad set of sources to ensure effectiveness and minimize interprovincial competitiveness impacts.
  • Revenues collected stay with the province or territory of origin.
  • The provinces and territories decide how to use this money. For example, they can give it back to families, build rapid transit, or support small businesses that will innovate and create good jobs for Canadians.
  • In provinces and territories with a direct price on carbon pollution, the price will start at a minimum of $10 per tonne in 2018, rising by $10 each year to $50 per tonne in 2022.
  • The Government of Canada will provide a pricing system for provinces and territories that do not adopt one of the two systems by 2018.
  • The approach will be reviewed in 2022 to confirm the path forward.
97% of Canadians live in a province or territory that has committed to pricing carbon pollution.
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