Weakening Canada
s industrial carbon price raises emissions, no clear economic benefit

A statement by the International Institute for Sustainable Development (IISD) arguing that weakening Canada's industrial carbon price provides no clear economic benefit, increases emissions, and risks significant clean economy investments.

• Modelling by IISD and Navius indicates that the impact of carbon pricing on GDP would be minimal, specifically less than 0.5% in 2040 for a high-price scenario reaching CAD 380, compared to a low-price scenario of CAD 130. This is supported by Canadian Climate Institute modelling showing limited GDP impact through 2030.
• A higher carbon price is projected to drive significantly more investment in the clean economy; a price of CAD 380/tonne in 2040 would generate nearly CAD 8 billion more in investment that year than a flat price of CAD 130/tonne maintained from 2030 to 2040.
• Maintaining a strong carbon price helps Canadian exporters avoid costs associated with the European Union Carbon Border Adjustment Mechanism, as reducing greenhouse gas emissions lowers the direct costs faced at the border.

APA

International Institute for Sustainable Development (2026). Weakening Canada
s industrial carbon price raises emissions, no clear economic benefit. https://www.iisd.org/articles/statement/weakening-canada-industrial-carbon-price-raises-emissions-no-clear-economic-benefit

Chicago

International Institute for Sustainable Development. Weakening Canada
s industrial carbon price raises emissions, no clear economic benefit. 2026. https://www.iisd.org/articles/statement/weakening-canada-industrial-carbon-price-raises-emissions-no-clear-economic-benefit.

Wikipedia

{{cite press release |author=International Institute for Sustainable Development |title=Weakening Canada
s industrial carbon price raises emissions, no clear economic benefit |date=13 May 2026 |url=https://www.iisd.org/articles/statement/weakening-canada-industrial-carbon-price-raises-emissions-no-clear-economic-benefit |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{internationalinstituteforsustainabledevelopment2026weakening, author = {{International Institute for Sustainable Development}}, title = {{Weakening Canada
s industrial carbon price raises emissions, no clear economic benefit}}, publisher = {International Institute for Sustainable Development}, year = {2026}, month = may, url = {https://www.iisd.org/articles/statement/weakening-canada-industrial-carbon-price-raises-emissions-no-clear-economic-benefit}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }