Pricing Carbon in Canada
Cap and Trade
In October 2016, the Federal government announced their new carbon pricing strategy. Beginning in 2018, the Federal government will impose a price on carbon in all provinces that do not have a pricing system in place. The price will start at $10 per tonne in 2018, rising in $10 increments to $50 per tonne in 2022. Provinces are able to adopt either this carbon tax or cap-and-trade system to support greenhouse gas reduction targets. Ontario has chosen to implement the cap and trade system.