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ARTICLE · 19 JANUARY 2018

Canada Unveils Backstop Carbon Pricing Details: The Greenhouse Gas Pollution Pricing Act

On January 15, the Canadian federal government released for public comment a draft Greenhouse Gas Pollution Pricing Act (Act) for its proposed federal carbon pricing system.

CanadaEnvironment

On January 15, the Canadian federal government released for public comment a draft Greenhouse Gas Pollution Pricing Act (Act) for its proposed federal carbon pricing system. The bill sets federal tax rates for various types of fossil fuels used for combustion in transportation, heating, electricity, manufacturing and industry, such as gasoline, diesel, propane and natural gas, that will be paid by fuel producers, distributors and importers. Details on the registration of producers, distributors and others is included, as well as reporting periods, rebates, remittance of the tax and penalties.

The tax is based on the carbon emissions from combusting the fuel or waste and is set to start at $10 per tonne of greenhouse gas emissions on January 1, 2019, and then rise by $10 per tonne each year until it hits $50 per tonne in 2023.

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