Canada’s federal government to impose carbon price on provinces

Canada’s Prime Minister Justin Trudeau said Monday that his government will establish a “floor price” on carbon pollution of $10 a tonne in 2018, rising to $50 a tonne by 2022.

During a debate in the House of Commons on whether Canada should ratify the Paris accord on climate change and cut greenhouse gas emissions by 30% from 2005 levels by 2030, Trudeau said provinces and territories will have the option of either establishing a carbon tax or implementing a cap-and-trade system “stringent enough” to meet or exceed the federal target.

The PM also stated that given the case that a province or territory doesn’t have either a carbon price or a cap-and-trade system in place by 2018, “the government of Canada will implement a price in that jurisdiction.”

In spite of the centralized decision, he stated that its outcomes would be revenue neutral for the federal government. This means that each province and territory would benefit directly from any revenues generated under the system.

Trudeau also said that the plan should keep and/or create billions of dollars and hundreds of well-paying jobs.

As discussions post-COP21 have moved forward throughout the year, the Mining Association of Canada has said its members support the federal government’s efforts to establish a national price on carbon pollution.