Question Period Note: Carbon Pollution Pricing

Environment and Climate Change Canada proposes to launch targeted consultations with provinces, territories, industry, Indigenous groups and other stakeholders, aiming to seek their input on options to strengthen industrial carbon markets across Canada.

• Well-functioning industrial carbon markets are a key tool to efficiently reducing emissions and unlocking investment in major decarbonization projects, including renewable energy and clean tech.
• The Government is committed to ensuring industrial pricing systems across Canada are effective in driving emissions reductions and investment while enabling our companies to remain competitive in the global marketplace. Providing certainty and predictability is crucial to maintaining investor confidence in decarbonization projects.
• The Government intends to engage with interested parties on how stronger carbon markets can help deliver on Canada’s broader climate and energy objectives.

• In March 2025, the government announced it was refocusing carbon pricing on a broad range of greenhouse gas emissions from industry and removed the federal fuel charge as of April 1, 2025 (i.e., federal fuel charge rates were set to zero).
• The Government committed to engage provinces, territories, Indigenous Peoples and stakeholders on changes to the minimum national stringency standards for carbon pollution pricing, known as the federal ‘benchmark’ criteria. Changes would focus on ensuring industrial pricing systems continue to maximize emissions reductions and encourage the transition to low carbon technologies, while protecting industry against competitiveness and carbon leakage impacts.
• In the interim, several provinces have announced an intention, or taken actions that will undermine their carbon pricing systems (Alberta, Saskatchewan). Others have existing issues that undermine their system, (Ontario).

Non-applicable