DOCUMENT D’INFORMATION

The document describes Canada's dual-track carbon pricing approach, distinguishing between consumer carbon taxes and industrial systems for large emitters. It details two primary industrial models—emissions-intensity based systems and cap-and-trade systems—and compares their application across different Canadian jurisdictions, highlighting the specific frameworks used in Alberta, Quebec, and the federal backstop system.

• Canada employs a dual carbon pricing structure: one for consumers and small businesses (the carbon tax) and another for large industrial emitters, such as cement or steel producers, to protect trade-exposed industries from 'carbon leakage' by allowing them to pay only a fraction of the pricing on total emissions.
• Industrial systems are divided into two main categories: emissions-intensity based systems, where credits are earned by staying below a performance standard, and cap-and-trade systems, where emission allowances are acquired via free allocation or auctions within a declining total cap.
• There are nine distinct emissions trading systems for large emitters in Canada, varying by emission thresholds for participation, the availability of offset credits, and whether performance standards are sector-specific or based on an installation's past emissions.
• Regional variations include Alberta's TIER system, which is the largest in Canada as the province accounts for approximately 60% of industrial emissions; Quebec's cap-and-trade system, which is linked to the Western Climate Initiative and has the lowest carbon price in Canada; and the Northwest Territories, which uses an industrial carbon tax in the form of a fuel charge with a partial rebate.
• The federal Output-Based Pricing System (OBPS/STFR) serves as a backstop and is currently utilized in Manitoba, Prince Edward Island, Nunavut, and Yukon.

APA

Canadian Climate Institute (2024). DOCUMENT D’INFORMATION. https://institutclimatique.ca/systemes-echanges-grands-emetteurs-tarification-carbone-canada/

Chicago

Canadian Climate Institute. DOCUMENT D’INFORMATION. 2024. https://institutclimatique.ca/systemes-echanges-grands-emetteurs-tarification-carbone-canada/.

Wikipedia

{{cite report |author=Canadian Climate Institute |title=DOCUMENT D’INFORMATION |date=9 December 2024 |url=https://institutclimatique.ca/systemes-echanges-grands-emetteurs-tarification-carbone-canada/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{canadianclimateinstitute2024document, author = {{Canadian Climate Institute}}, title = {{DOCUMENT D’INFORMATION}}, institution = {Canadian Climate Institute}, year = {2024}, month = dec, url = {https://institutclimatique.ca/systemes-echanges-grands-emetteurs-tarification-carbone-canada/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }