Since attending the United Nations' Climate Change
Conference in Paris, Canada's federal and provincial
governments have been in discussions about how carbon should be
priced in Canada. Some of the questions being considered include:
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? Recently, federal Minister of
Environment and Climate Change, Catherine McKenna, indicated that
the Government of Canada will propose a plan for national carbon
pricing in the fall.
In March, Canada's provincial and territorial premiers,
along with Prime Minister Justin Trudeau, met in Vancouver to
discuss a national climate change plan. On March 3, 2016, the First
Ministers agreed to and published the Vancouver Declaration on
Clean Growth and Climate Change.
Under the Declaration the First Ministers agreed to:
implement greenhouse gas mitigation policies to support
meeting or exceeding Canada's 2030 target of a 30% reduction
below 2005 emission levels, including specific provincial and
territorial targets and objectives
transition to a low carbon economy by adopting a broad
range of domestic measures, including carbon pricing mechanisms,
adapted to each province's and territory's specific
circumstances, in particular the realities of Canada's
Indigenous peoples and Arctic and sub-Arctic regions, and
strengthen pan-Canadian intergovernmental cooperation and
coordination on clean growth and climate change, including through
mechanisms such as the Canadian Council of Ministers of the
Environment, Ministers of Finance, Ministers of Innovation and
Economic Development, and Energy Ministers, in collaboration with
To achieve these and other commitments, the First Ministers
agreed to "develop a pan-Canadian framework on clean growth
and climate change, and implement it by early 2017." The First
Ministers created four working groups to identify options for
action in four areas: 1) clean technology, innovation and jobs, 2)
carbon pricing mechanisms, 3) specific mitigation opportunities,
and 4) adaptation and climate resilience. The First Ministers
agreed to meet in fall of 2016 to finalize the pan-Canadian
framework on clean growth and climate change.
On July 15, 2016, federal Minister of Environment and Climate
Change, Catherine McKenna, welcomed numerous large private sector
corporations including Air Canada, Barrick Gold Corporation,
Enbridge Inc., Shell Canada Limited, Suncor Energy and Unilever
Canada Inc. into the Carbon Pricing Leadership Coalition
("CPLC"). The CPLC's goal is to expand the use of
effective carbon pricing policies around the world.
On the same day, Minister McKenna was interviewed by Bloomberg
TV Canada and stated that the Government of Canada would like to
see uniformity on the national price of carbon and that it would be
up to provinces and territories to determine which model to use for
collecting revenues (for example, cap and trade or a carbon tax).
Minister McKenna stated that the Government is
"committed" to a national price and also stated "we
need a national price on carbon so that's what we're going
to have in the fall."
Minister McKenna did not offer any details about how a national
price on carbon would be proposed or introduced in the fall.
Minister McKenna promised a "plan that includes carbon
Canada's Premiers attended their Summer Meeting from July
20-22, 2016 in Whitehorse, Yukon. Among the agenda items? Carbon
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