Department of Finance Canada Proposes Refinements to Federal Carbon Pollution Pricing

From: Department of Finance Canada

March 19, 2019 – Ottawa, Ontario – Department of Finance Canada

Carbon pollution is not free. Canadians feel its effects when extreme weather threatens their safety, their health, their communities and their livelihoods. Collectively we also pay for pollution in the form of structural repairs, food prices, health care costs, higher insurance premiums and the drain on emergency services. Climate change is expected to cost Canada’s economy $5 billion annually by 2020.

Experts agree that putting a price on carbon pollution is the most effective and efficient way to cut climate change causing greenhouse gas emissions. The Government has taken action accordingly to ensure that there is a price on carbon pollution across Canada as of 2019. To do this, the Government is implementing a fuel charge in jurisdictions that do not have systems meeting a federal standard, and in those that voluntarily adopt it.

On October 23, 2018, the Government announced certain details of Canada’s pollution pricing system. At that time, the Government also released for public comment proposed targeted relief from the fuel charge for natural gas and propane delivered to greenhouse operators and for light fuel oil (e.g., diesel) delivered to power plant operators that generate electricity for remote communities.

In response to feedback from Canadians, the Government today released for consultation a set of draft regulations under the Greenhouse Gas Pollution Pricing Act that would provide these targeted reliefs.

This consultation also seeks comments on additional regulatory proposals. These proposals include:

  • expanded relief of the fuel charge for electricity generation for remote communities;
  • a rebate for exports of fuel under certain conditions;
  • integration of the Saskatchewan output-based performance standards system with the federal fuel charge; and
  • expanded relief of the fuel charge for farmers to include delivery at a cardlock facility when certain conditions are met.

Canadians are invited to provide comments on these draft regulations by April 19, 2019. Please send your comments to fin.tarification-pollution-p[email protected]. Written correspondence related to this consultation can also be mailed to:

Carbon Pollution Pricing

Department of Finance Canada

90 Elgin Street

Ottawa, Ontario

K1A 0G5

Quick facts

  • Carbon pollution pricing delivers economic benefits—encouraging Canadians and businesses to innovate and invest in clean technologies and long-term growth opportunities that will position Canada for success in a cleaner and greener global economy.

  • Carbon pollution pricing will make a significant contribution toward meeting Canada’s greenhouse gas reduction target. It will cut carbon pollution by between 50 to 60 million tonnes in 2022.

/Public Release. View in full here.