The State of Carbon Pricing in Canada
THE STATE OF CARBON PRICING IN CANADA KEY FINDINGS AND RECOMMENDATIONS 2020 Expert Assessment finds carbon pricing can pave the way to Canada’s emission reduction targets—with some fine-tuning. Canada’s long road to achieving carbon emissions reductions has resulted in a remarkably diverse set of policy instruments implemented at the federal, provincial, and territorial levels. The policy patchwork includes a mix of performance regulations, carbon pricing, financial incentives, and Many design elements innovation programs that collectively target most sources of Canada’s that governments have carbon emissions. chosen to implement Carbon pricing is now a key component of pan-Canadian efforts to achieve deep emissions reductions. Prior to 2016, carbon pricing covered about 38 diminish the short- per cent of Canada’s national emissions, while by 2020, 78 per cent of and longer-term Canada’s emissions had a carbon price. effectiveness of carbon But carbon pricing only works if systems are designed well. pricing to deliver Starting in the fall of 2020, the Canadian Institute for Climate Choices emission reductions. conducted an independent assessment of the effectiveness of federal, provincial, and territorial carbon pricing systems. This assessment was undertaken at the request of Environment and Climate Change Canada and builds on a commitment in the Pan-Canadian Framework for Clean Growth and Climate Change. The federal government consulted with provinces, territories, and national Indigenous representatives to guide its framing. Our independent assessment took an in-depth look at federal, provincial, and territorial carbon pricing systems as implemented in 2020. These systems include carbon taxes or charges, cap-and-trade systems, credit trading systems for large emitters, and various hybrids of these three.
[Show full text]