Focus Turns To Federal Carbon Price Stringency Requirements Following Supreme Court Decision

The Supreme Court of Canada's recent majority decision upheld the constitutionality of the federal Greenhouse Gas Pollution Pricing Act  (GGPPA). This means that the federal backstop carbon price will continue to apply in jurisdictions without an equivalent regime. Going forward, the practical focus will be on how (rather than "whether") to ensure ongoing compliance with the GGPPA. A key question will be whether provincial or territorial carbon pricing systems will be considered equivalent to the GGPPA, especially as that equivalency test is revisited over time.

What you need to know

• By a six to three majority, the Supreme Court of Canada upheld the GGPPA as a valid exercise of Parliament's power to make laws for the "Peace, Order and Good Government" (POGG) of Canada" (read our full analysis on the ruling)¹.