Canada’s federal government will impose a “carbon pollution pricing system” next year in provinces that have not enacted programs meeting its goals for abatement of greenhouse-gas emissions.
It will use fuel charges and an “output-based pricing system” for “emissions-intensive, trade-exposed industries” in Manitoba, New Brunswick, Ontario, and Saskatchewan.
The program it established in 2016 for climate-change mitigation envisioned emission levies reaching $50/tonne of carbon dioxide in 2022 (OGJ Online, Oct. 5, 2016).
The government allowed provincial governments to implement their own systems but said it would impose federal levies where provinces refused to act or had less-ambitious programs.
The newly announced pricing scheme will raise next year’s prices of gasoline by 4.42¢ (Can.)/l. and of natural gas for home heating by 3.91¢/cu m, the government said.
Most of the proceeds will be rebated to individual through cash payments. The government said rebates will exceed costs for most families.