Canada plans to introduce the pricing on carbon pollution for all Canadian jurisdictions, to be implemented by 2018.
In order to accomplish this, Canada will set a benchmark for pricing carbon emissions at a level that will help the country meet its greenhouse gas emission targets, while providing greater certainty and predictability to Canadian businesses, the Canadian government informed.
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.
Justin Trudeau, Prime Minister of Canada, said: “The government proposes that the price on carbon pollution should start at a minimum of $10 per tonne in 2018, rising by $10 each year to $50 per tonne in 2022.
“Provinces and territories that choose cap-and-trade systems will need to decrease emissions in line to both Canada’s target and to the reductions expected in jurisdictions that choose a price-based system. If neither price nor cap and trade is in place by 2018, the Government of Canada will implement a price in that jurisdiction.”
Elisa Obermann, from Marine Renewables Canada, the country’s wave, tidal, and river current energy association representing technology and project developers, utilities, researchers, and the marine energy supply chain, said:
“This is a positive step that will drive innovation, and as markets increasingly demand renewable energy solutions there is an opportunity increase the export of Canadian renewable electricity, technologies, services and products to markets around the world.”
Catherine McKenna, Minister of Environment and Climate Change, said: “Pricing pollution is one of the most efficient ways to reduce greenhouse gas emissions and to stimulate innovation. Already 80% of Canadians live in a province where there is pollution pricing. We want to continue this trend and cover the final 20%.”