Canadian Carbon Pricing Systems: 2025 Review

The report assesses five Canadian industrial carbon pricing systems, noting that while the combination of a federal benchmark and provincial tailoring has been largely effective, design differences can fragment markets. It emphasizes the need for predictable carbon pricing and continuous monitoring to prevent issues like credit oversupply.

• Canada's industrial carbon pricing approach, which combines a federal benchmark for coherence with provincial tailoring for competitiveness, has been generally effective, although variations in design can lead to fragmented markets and obscured carbon price signals.
• To drive industrial decarbonization and emissions reductions, it is critical to maintain a strong and predictable carbon price, supported by continuous monitoring to avoid risks such as credit oversupply.
• As of 2025, large industrial emitters across all Canadian regions are covered by either a regional or federal carbon pricing system, with Alberta having established the first such system in North America in 2007.

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} }