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ARTICLE · 17 DECEMBER 2020

Canada To Increase Carbon Taxes By 467%

The Canadian federal government recently announced that the carbon tax will increase from its current $30 per tonne of greenhouse gas emissions to $170 per tonne in 2030 – an increase of 467% over 10 years.

CanadaEnergy and Natural Resources

The Canadian federal government recently announced that the carbon tax will increase from its current $30 per tonne of greenhouse gas (GHG) emissions to $170 per tonne in 2030 – an increase of 467% over 10 years. This announcement, if made into law, is expected to have a profound effect on many consumers, businesses and industries in Canada.

The federal carbon tax in Canada is set under the federal Greenhouse Gas Pollution Pricing Act (GGPPA). The GGPPA has two main parts:

  • a federal fuel charge (based on the annual carbon price) paid by fuel producers, distributors, and certain prescribed users on 21 types of fuel and combustible waste, and
  • an output-based pricing system (OBPS) requiring large emitters in certain industries that emit 50,000 tonnes of GHG or more per year to meet GHG emissions intensity standards by reducing their emissions, remitting for retirement surplus carbon or offset credits and/or paying a carbon tax on excess emissions. 

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