Statement from Tom Green, David Suzuki Foundation senior climate policy adviser:

“Canada’s ability to reduce emissions relies on pricing pollution. Today’s announcement speaks to the importance of every province doing their part to reduce emissions. It’s clear that carbon pricing must meet high standards and if not, the federal backstop will be applied. The Climate Action incentives returned to those provinces and families will offset the higher costs applied to carbon pollution.

“We continue to advocate against exemptions from the full carbon price for electricity system emissions, and for the industrial pricing scheme to be strengthened — but today’s announcement is a good step in addressing Canada’s need to more aggressively reduce carbon emissions as was called for at COP27. While carbon pricing isn’t the only climate policy, it is supported widely by economists and climate scientists. It’s a policy that recognizes Canada’s pollution problem must be addressed by all provinces since greenhouse gases don’t recognize provincial boundaries.”

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  • The federal government applies a price on pollution in jurisdictions that do not have their own pollution pricing systems that meet the federal benchmark.
  • In 2023-24, the federal fuel charge will continue to apply in Alberta, Saskatchewan, Manitoba and Ontario, and will come into effect as of July 1, 2023, in Newfoundland and Labrador, Nova Scotia and Prince Edward Island. Pollution-pricing systems in B.C., New Brunswick, Northwest Territories and Quebec meet the federal benchmark so they will continue to apply, updated to increase the price from 2023 to 2030.