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

The International Institute for Sustainable Development (IISD) contends that a strong industrial carbon price is essential for Canada's climate goals and economic competitiveness. Modelling indicates that a high-price scenario reaching CAD 380 by 2040 would have a minimal impact on GDP (less than 0.5%) while generating nearly CAD 8 billion more in investment compared to a flat price of CAD 130. The document further suggests that a robust domestic carbon price helps Canadian exporters avoid costs associated with the European Union Carbon Border Adjustment Mechanism.

• 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.
• A higher carbon price significantly increases clean economy investment; a price of CAD 380/tonne in 2040 would result in nearly CAD 8 billion more investment that year than a flat price of CAD 130/tonne maintained from 2030 to 2040.
• A strong Canadian carbon price is presented as the most effective way to decarbonize exporters, which helps them avoid direct costs at the border imposed by the European Union Carbon Border Adjustment Mechanism.

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} }