Stronger carbon pricing is the way to net zero

The authors propose a two-pronged approach to reach net-zero electricity in Canada by 2035: removing the output-based pricing system (OBPS) for electricity to increase emission incentives while rebating revenues to consumers, and implementing a performance-standard regulation to limit emission intensity of new and existing facilities.

• The authors argue that the federal government should strengthen carbon pricing in the electricity sector by eliminating the output-based pricing system (OBPS), as electricity does not meet the criteria of being an emissions-intensive and trade-exposed sector.
• To mitigate the impact of higher power prices on consumers and businesses, the document suggests returning all carbon-price revenues directly to electricity consumers via their bills, citing a similar model used in California.
• Policy uncertainty regarding future carbon prices encourages the construction of natural gas-fired capacity; the authors suggest using financial instruments through the Canada Infrastructure Bank (CIB) to guarantee future carbon prices, such as the $170 per tonne target for 2030.
• A proposed clean electricity standard should act as a backstop in two stages: first, by limiting the emission intensity of new facilities to rule out unabated natural gas, and second, by ratcheting down requirements so all facilities are net-zero by 2035.

APA

Canadian Climate Institute (2022). Stronger carbon pricing is the way to net zero. https://climateinstitute.ca/stronger-carbon-pricing-is-the-way-to-net-zero/

Chicago

Canadian Climate Institute. Stronger carbon pricing is the way to net zero. 2022. https://climateinstitute.ca/stronger-carbon-pricing-is-the-way-to-net-zero/.

Wikipedia

{{cite report |author=Canadian Climate Institute |title=Stronger carbon pricing is the way to net zero |date=19 January 2022 |url=https://climateinstitute.ca/stronger-carbon-pricing-is-the-way-to-net-zero/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{canadianclimateinstitute2022stronger, author = {{Canadian Climate Institute}}, title = {{Stronger carbon pricing is the way to net zero}}, institution = {Canadian Climate Institute}, year = {2022}, month = jan, url = {https://climateinstitute.ca/stronger-carbon-pricing-is-the-way-to-net-zero/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }