On July 28, 2016, we wrote about the Government of
Canada's intention to propose a plan for national carbon
pricing in the fall. At the time, many questions remained
outstanding, such as: Is each province or territory required to put
a price on carbon? If so, should each province or territory have
its own pricing mechanism? Will the Government of Canada create a
system binding on every province or territory? Prime Minister
Trudeau has now provided answers as the Government announced
pan-Canadian carbon pricing by 2018.
In an address to the House of Commons, Prime Minister Trudeau
indicated:
- all Canadian jurisdictions will have
carbon pricing in place by 2018
- provinces and territories may decide
whether to implement carbon pricing by using a carbon tax or
adopting a cap and trade system – if a province or territory
does not implement a mechanism, the Government of Canada will do so
for them
