On October 24, 2018, the federal government
announced its intention to move forward with a federal carbon
pricing system beginning in 2019. As we reported in previous
blog posts, the federal government has been working on
implementing a federal "price on pollution" since 2016,
when it announced its Pan-Canadian Framework on Clean Growth
and Climate Change. Earlier this year, the government released
the Greenhouse Gas Pollution Pricing Act, setting out a
carbon pricing system that will consist of a two-pronged approach:
(i) a charge on fossil fuels that are consumed within a province,
which will be administered by the Canada Revenue Agency (the fuel
charge will generally be paid by fuel producers and distributors);
and (ii) an output-based pricing system (OBPS) that applies to
emission-intensive industrial facilities, which will be
administered by Environment Canada and Climate Change (ECCC).
