ReNew Canada reports that The Government of Canada has proposed its pan-Canadian approach to pricing carbon pollution. Under the new plan, all Canadian jurisdictions will have carbon pricing in place by 2018.
In order to accomplish this, Canada will set a benchmark for pricing carbon emissions—set at a level that will help Canada meet its greenhouse gas emission targets, while providing greater certainty and predictability to Canadian businesses.
Provinces and territories will have flexibility in deciding how they implement carbon pricing: they can put a direct price on carbon pollution or they can adopt a cap-and-trade system.
Pricing carbon pollution will give Canada an edge in building a clean-growth economy; it will make Canadian businesses more competitive; it will bring new and exciting job prospects for middle class Canadians; and it will reduce the pollution that threatens our clean air and oceans.
“Pricing pollution is one of the most efficient ways to reduce greenhouse gas emissions and to stimulate innovation,” said Catherine McKenna, minister of Environment and Climate Change. “Already 80 percent of Canadians live in a province where there is pollution pricing. We want to continue this trend and cover the final 20 per cent.”
Pricing will be based on greenhouse gas emissions and applied to a common and broad set of sources to ensure effectiveness. The price on carbon pollution should start at a minimum of $10 per tonne in 2018 and rise by $10 a year to reach $50 per tonne in 2022. Revenues from carbon pricing will remain with provinces and territories of origin.
Provinces and territories will use the revenues from this system as they see fit, whether it is to give it back to consumers, to support their workers and their families, to help vulnerable groups and communities in the North, or to support businesses that innovate and create good jobs for the future.
The overall approach will be reviewed in 2022 to ensure that it is effective and to confirm future price increases. The review will account for actions by other countries.