How Canada's industrial carbon price can drive investment and emissions reductions beyond 2030

This report by the International Institute for Sustainable Development analyzes three potential trajectories for Canada's industrial carbon price between 2030 and 2040 to determine their impact on emissions and economic growth.

• The report evaluates three carbon price trajectories for the period 2030 to 2040, modeled by Navius Research Inc. These include a 'flat price' remaining at CAD 130/t CO2e, a 'low price' rising linearly to CAD 230/t CO2e by 2040, and a 'high price' rising linearly to CAD 380/t CO2e by 2040. The high-price scenario is found to drive investment in low-carbon technologies and achieve significant emissions reductions while the economy grows.
• To maximize emissions reductions and ensure a smooth economic transition, the report suggests implementing rapid and differentiated tightening rates for performance standards, specifically tightening them more quickly in sectors with less international competition, such as oil and gas production. This approach is intended to improve outcomes for GDP, jobs, and net exports.
• While industrial carbon pricing is identified as a highly efficient tool for industrial decarbonization, the report concludes that it cannot achieve net-zero emissions by 2050 on its own; robust complementary climate policies must also be implemented.

APA

Cosbey,, S. H. (2026). How Canada's industrial carbon price can drive investment and emissions reductions beyond 2030. International Institute for Sustainable Development. https://www.iisd.org/publications/report/canada-industrial-carbon-price-beyond-2030

Chicago

Cosbey,, Steven Haig,Aaron. How Canada's industrial carbon price can drive investment and emissions reductions beyond 2030. International Institute for Sustainable Development, 2026. https://www.iisd.org/publications/report/canada-industrial-carbon-price-beyond-2030.

Wikipedia

{{cite report |last1=Cosbey, |first1=Steven Haig,Aaron |title=How Canada's industrial carbon price can drive investment and emissions reductions beyond 2030 |publisher=International Institute for Sustainable Development |date=30 June 2026 |url=https://www.iisd.org/publications/report/canada-industrial-carbon-price-beyond-2030 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cosbey2026how, author = {Cosbey,, Steven Haig,Aaron}, title = {{How Canada's industrial carbon price can drive investment and emissions reductions beyond 2030}}, institution = {International Institute for Sustainable Development}, year = {2026}, month = jun, url = {https://www.iisd.org/publications/report/canada-industrial-carbon-price-beyond-2030}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }