At POW, we believe in setting an economy-wide price on carbon. Instead of fighting individual legislative battles one regulation at a time, putting a federally set price on carbon is a comprehensive strategy to reduce emissions and mitigating climate change. It accounts for the actual cost of burning fossil fuels while creating a more competitive market for clean energy sources. Through an annual rebate, 60% of Canadian households will receive more than they paid in carbon taxes. 

POLICY DETAILS 

In Canada, carbon pricing works a bit differently in each province and territory—but every jurisdiction has to meet the minimum price on carbon emissions set by the federal government, starting at $20 per tonne in 2019 and rising to $50 per tonne in 2022. These legal minimums are referred to as the federal carbon pricing backstop. If a jurisdiction meets the minimums, it is entitled to run its own carbon pricing system - if not, the Federal system kicks in.

In December 2020, the federal government announced a plan to increase the carbon price by $15 per tonne per year from 2023 to 2030. If a jurisdiction meets the minimums, it is entitled to run its own carbon pricing system - if not, the Federal system kicks in.

Through an annual rebate, 60% of Canadian households will receive more than they paid in carbon taxes. 

There are two overarching systems for pricing carbon in Canada: the fuel charge, which is the carbon tax that Canadians pay on gasoline, diesel, natural gas, and other hydrocarbon fuels; and the output-based pricing system (OBPS), which applies a charge to large industrial emitters.