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

The report evaluates three carbon price scenarios for Canada from 2030 to 2040: a flat price (CAD 130/t CO2e), a low price (rising to CAD 230/t CO2e), and a high price (rising to CAD 380/t CO2e). It concludes that a high-price trajectory is the most effective for driving investment in clean projects and achieving significant emissions reductions with minimal economic impact. However, the report emphasizes that carbon pricing alone is insufficient to reach net-zero emissions by 2050 and must be supported by robust complementary policies and differentiated tightening of performance standards, particularly in sectors like oil and gas production.

• A high-price carbon trajectory between 2030 and 2040 enables significant emissions reductions and stimulates investment in low-carbon technologies without hindering economic growth.
• To maximize emissions reductions and economic outcomes, performance standards should be tightened more rapidly in sectors with lower international competition, such as oil and gas production.
• While industrial carbon pricing is a highly efficient tool for decarbonization, achieving net-zero emissions by 2050 requires the implementation of additional complementary climate policies.

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} }