Canada risks falling behind on climate commitments and clean-economy growth
VANCOUVER — UNCEDED xʷməθkʷəy̓əm (MUSQUEAM), Sḵwx̱wú7mesh (SQUAMISH) AND səlilwətaɬ (TSLEIL-WAUTUTH) TERRITORIES
With the April 1, 2026, deadline for the Alberta-Ottawa memorandum of understanding fast approaching, leading climate policy experts are calling on Prime Minister Mark Carney to restore the strength and integrity of Canada’s industrial carbon pricing system to increase competitiveness and reduce greenhouse gas emissions.
The joint letter, sent to Prime Minister Carney yesterday, warns that recent changes to Canada’s climate policy framework undermine the country’s ability to tackle pollution, protect people from climate change and continue progress on legislated climate targets. As other measures have been weakened, paused or outright scrapped, strong, credible industrial carbon pricing systems play an even more decisive role in determining whether Canada can meaningfully reduce industrial emissions and remain competitive in a low-carbon global economy.
Industrial carbon pricing is slated to play a much larger role in Canada’s climate commitments than any other single policy. It is widely agreed to be the most efficient road to industrial decarbonization (in concert with other policies), and for that reason it is key to Canadian industry competitiveness in a world where investors and buyers increasingly care about carbon footprints.
Pierre Iachetti, Executive Director, David Suzuki Foundation
“The science is clear, and so are the stakes. Industrial carbon pricing is the strongest tool Canada has to advance on climate and position its economy for success. As other environmental policies have been dropped or diluted, industrial carbon pricing must be strengthened and fit for purpose. While Canada’s trading partners are acting decisively to ensure polluters pay, Canada risks falling behind and losing ground on climate and competitiveness. We urge Prime Minister Carney to outfit this proven tool for its full potential: strengthen the benchmark, ensure a rising effective price, restore market integrity and apply the federal backstop automatically when provincial systems fall short.”
Andrew Gage, Staff Lawyer, West Coast Environmental Law Association
“Canadian and international courts recognize that weak climate action violates Canadians’ human rights. It’s time for the Carney government to deliver on its stated climate commitments and start protecting us from wildfires, floods and other climate disasters, including through a strong industrial carbon price.”
Dr. Moe Qureshi, PhD, Director of Climate Research and Policy, Conservation Council of New Brunswick
“Industrial carbon pricing is one of the most effective tools Canada has to cut pollution while keeping our economy competitive. Atlantic Canadians want to see real climate progress while building a stronger economy. As other climate policies have been weakened or delayed, it’s essential that the federal government ensure the system remains strong, predictable and enforced so that every province pulls its weight.”
Chris Severson-Baker, Executive Director, Pembina Institute
“We should feel proud in Canada that we have industrial carbon pricing systems that elegantly balance the need to make our industries globally competitive with the importance of reducing emissions and protecting the environment – all while limiting the financial burden of climate on Canadians. Fixing and strengthening industrial carbon pricing has the potential to unleash billions of dollars of low-carbon aligned investment, creating jobs and futureproofing our industries for decades to come. We are pleased it was a priority element of the federal government’s climate competitiveness strategy released last fall, and urge Ottawa not to delay in implementing fixes that will provide the certainty companies urgently need.”
Tim Gray, Executive Director, Environmental Defence
“Industrial carbon pricing is one of Canada’s last major pollution-reduction tools. It makes the biggest polluters pay a small amount for the damage they are causing while keeping costs low for households. For it to work, the system must be strong enough to drive real emissions cuts and not be riddled with loopholes. Letting big polluters off the hook would undermine climate progress and make a joke of basic economic fairness.”
Patricia Fuller, President and CEO, International Institute for Sustainable Development
“We’re at a critical juncture. If we get it right, the industrial carbon price can be our most important tool for fighting climate change. At the same time, it can help our heavy industry compete and attract investment in markets that increasingly care about environmental performance.”
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For more information or interviews, please contact:
David Suzuki Foundation: Rosie Rattray: rrattray@davidsuzuki.org, 604-732-4228, ext. 132
West Coast Environmental Law Association: Andrew Gage, Staff Lawyer: agage@wcel.org, 604-601-2506
Conservation Council of New Brunswick: Kyle Reid: kyle.reid@conservationcouncil.ca, 506-458-8747
Pembina Institute: Alex Burton, alexb@pembina.org, 825-994-2558
International Institute for Sustainable Development: Nicholas Pearce, media@iisd.org. 613-238-2296 ext. 114
Environmental Defence: Midhat Moini, Communications Manager, mmoini@environmentaldefence.ca, 437-440-3400