B.C. Implements New Output-Based Pricing System For Carbon Emissions

Recently, British Columbia made changes to its industrial greenhouse gas emissions regime by implementing a mandatory carbon emissions output-based pricing system (OBPS) for major industrial operations. The OBPS replaces the CleanBC Industrial Incentive Program (CIIP).

The OBPS is intended to reduce industrial greenhouse gases to meet B.C.'s climate goals set out in the CleanBC Roadmap to 2030, while meeting the national standards.

Background

B.C. first implemented a carbon tax under the Carbon Tax Act in 2008. The tax started at C$10 per tonne of carbon dioxide equivalent (tCO2e), was raised to C$40 in 2020 and increased to C$80 on April 1, 2024. It will increase to C$170 by 2030.