Canadian Carbon Pricing Systems: 2025 Review

A report by the Pembina Institute, commissioned by the International Institute for Sustainable Development, evaluates five industrial carbon pricing systems in Canada to provide lessons for other regions, such as Southeast Asia, on driving emissions reductions while maintaining industrial competitiveness.

• Canada utilizes a combination of federal and provincial industrial carbon pricing systems. While a federal benchmark ensures coherence and provincial customization protects competitiveness, differences in design can lead to fragmented markets and obscured carbon price signals.
• The report analyzes five specific Canadian carbon pricing systems: the federal Output-Based Pricing System, Alberta’s Technology Innovation and Emissions Reduction regulation, British Columbia’s Output-Based Pricing System, Ontario’s Emission Pricing System, and Québec’s Cap-and-Trade.
• Effective industrial decarbonization requires a predictable carbon price and continuous system maintenance. The Canadian experience specifically demonstrates that credit oversupply is a risk that necessitates systems to strengthen predictably over time.

APA

Noel,, J. W. S. (2026). Canadian Carbon Pricing Systems: 2025 Review. International Institute for Sustainable Development. https://www.iisd.org/publications/report/canadian-carbon-pricing-systems-2025-review

Chicago

Noel,, Jason Wang,Ian Sanderson,Will. Canadian Carbon Pricing Systems: 2025 Review. International Institute for Sustainable Development, 2026. https://www.iisd.org/publications/report/canadian-carbon-pricing-systems-2025-review.

Wikipedia

{{cite report |last1=Noel, |first1=Jason Wang,Ian Sanderson,Will |title=Canadian Carbon Pricing Systems: 2025 Review |publisher=International Institute for Sustainable Development |date=4 March 2026 |url=https://www.iisd.org/publications/report/canadian-carbon-pricing-systems-2025-review |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{noel2026canadian, author = {Noel,, Jason Wang,Ian Sanderson,Will}, title = {{Canadian Carbon Pricing Systems: 2025 Review}}, institution = {International Institute for Sustainable Development}, year = {2026}, month = mar, url = {https://www.iisd.org/publications/report/canadian-carbon-pricing-systems-2025-review}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }