The Pan-Canadian Framework on Clean Growth and Climate Change is the federal government’s plan to meet its emissions reduction targets and grow the economy. A central component of the Pan-Canadian Framework is the commitment to pricing carbon pollution across the country by 2018.
In October 2016, the federal government published a benchmark for ensuring that carbon pricing applies to a broad set of emission sources throughout Canada by 2018 with increasing stringency over time.
The federal benchmark calls for a carbon price starting at $10 per tonne of carbon emissions in 2018 that will increase by $10 annually until it reaches $50 per tonne in 2022.
All provinces and territories will have the flexibility to implement their own carbon pollution pricing systems under the benchmark.
In May 2017, the federal government released the Technical Paper on the Federal Carbon Pricing Backstop, describing the new legislation and regulations in 2018 to implement a carbon pricing solution—or backstop—for any province or territory that does not have a carbon pricing system that aligns with the benchmark.
As work begins to implement carbon pricing systems across Canada, the federal government has committed to work with the territories to find solutions that address their unique circumstances, including high costs of living and of energy, challenges with food security, and emerging economies. The federal government will also engage Indigenous Peoples to find solutions that address their unique circumstances, including high costs of living and of energy, challenges with food security, and emerging economies.