Should Canada Strengthen Its Carbon Pricing Rules?

Official title: Driving Effective Carbon Markets in Canada

Open Regulations & Permits Economy & Jobs Environment & Climate
The federal government wants feedback on tightening the rules that provinces must follow for carbon pricing. Right now, each province can design its own system as long as it meets minimum standards. Ottawa is asking whether those standards should be stricter to push industries toward cleaner technology faster.

Why This Matters

Carbon pricing affects what you pay for gas, heating, and everyday goods. Stricter rules could mean higher costs for some products—but also cleaner air and more investment in green jobs. If you care about climate action or energy costs, this is your chance to weigh in.

What Could Change

The federal benchmark for carbon pricing could get tougher in 2026. That means provinces would need to strengthen their own systems or face the federal backstop. Industrial polluters may face higher carbon costs, pushing them to invest in cleaner technology or risk losing competitiveness.

Key Issues

  • How can carbon pricing provide stronger incentives for decarbonization?
  • How can carbon pricing drive more investment in clean technology?
  • How can we protect Canadian industries from carbon leakage and competitiveness risks?

How to Participate

  1. Read the federal carbon pollution pricing benchmark discussion paper to understand the proposed changes.
  2. Submit your feedback by email to tarificationducarbone-carbonpricing@ec.gc.ca by the deadline.
  3. Register for the technical webinar on January 6, 2026 by emailing tarificationducarbone-carbonpricing@ec.gc.ca.

Events

Date Event Location Actions
January 6, 2026 Technical Webinar on Federal Benchmark Criteria Virtual

Submit Your Input

Questions Being Asked (3)
  1. How can carbon pricing provide strong incentives for decarbonization?
  2. How can carbon pricing provide strong incentives for investments in clean technology?
  3. How can carbon pricing continue to protect against carbon leakage and competitiveness risks?