Canada’s Carbon Markets In Transition: A Greenhouse Gas Regulatory Update

Canada’s carbon markets are being reshaped. At the federal level, the “consumer carbon tax” has been eliminated and the carbon pricing benchmark has been updated to establish a new national price trajectory. At the provincial level, Québec has enacted a comprehensive package of regulatory amendments to its cap-and-trade system and Alberta and the federal government have reached a landmark Implementation Agreement that introduces structural reforms to Alberta’s industrial carbon pricing regime. Together, these developments signal a new phase for Canadian carbon markets.

This bulletin provides an update on key developments across Canada’s federal and provincial carbon markets along with a brief overview of notable international developments.