June 28, 2019 – Ottawa, Ontario

Climate change is real and Canadians are feeling the impacts—from wildfires that choke the air with smoke, to devastating floods and deadly heatwaves. Canada is already warming at twice the global rate, and Canadians expect governments to act. The Government of Canada has a comprehensive climate plan that is cutting pollution and investing in the clean economy to create jobs and new economic opportunities for the middle class.

Fighting climate change is our greatest challenge—but it’s also a profound opportunity to make Canada’s economy stronger and more competitive. Global action on climate change will create a low-carbon economy worth an estimated $26 trillion over the next 10 years, and mobilize Canada’s skilled workers, engineers, businesses and entrepreneurs to develop and implement clean solutions and market them to the world.

Today, the Minister of Environment and Climate Change, Catherine McKenna, announced the next steps on measures to drive clean growth and climate action in Canada, including:

Final regulations putting a price on pollution for industry . Under the Output-Based Pricing System (OBPS), industrial facilities that emit 50,000 tonnes or more per year pay a price on pollution starting at $20 a tonne this year, rising to $50 a tonne in 2022. To minimize competitiveness and carbon leakage risks for additional facilities in some sectors while maintaining the incentive to reduce their emissions, facilities emitting 10,000 tonnes or more in certain sectors can also apply to participate voluntarily in the OBPS. The standards announced today determine the portion of their emissions on which they will pay that price. These standards apply retroactively to January 1, 2019, in provinces where the system applies, and as of July 1, 2019, in Yukon and Nunavut.

. Under the Output-Based Pricing System (OBPS), industrial facilities that emit 50,000 tonnes or more per year pay a price on pollution starting at $20 a tonne this year, rising to $50 a tonne in 2022. To minimize competitiveness and carbon leakage risks for additional facilities in some sectors while maintaining the incentive to reduce their emissions, facilities emitting 10,000 tonnes or more in certain sectors can also apply to participate voluntarily in the OBPS. The standards announced today determine the portion of their emissions on which they will pay that price. These standards apply retroactively to January 1, 2019, in provinces where the system applies, and as of July 1, 2019, in Yukon and Nunavut. Canada’s regulatory approach for the Clean Fuel Standard . The federal government is seeking input on its proposed regulatory approach to the clean fuel standard, which would cut emissions from fuels used in Canada by 30 million tonnes a year by 2030. The proposed regulations for liquid fuels are expected to be published in Canada Gazette Part I in early 2020, and come into force in 2022. The government intends to bring liquid class regulations into force in 2022 and the gaseous and solid classes in 2023.

. The federal government is seeking input on its proposed regulatory approach to the clean fuel standard, which would cut emissions from fuels used in Canada by 30 million tonnes a year by 2030. The proposed regulations for liquid fuels are expected to be published in Canada Gazette Part I in early 2020, and come into force in 2022. The government intends to bring liquid class regulations into force in 2022 and the gaseous and solid classes in 2023. The proposed approach to developing a federal offset system . A federal offset system creates market opportunities for small businesses as well as sectors such as agriculture, waste and forestry to provide climate solutions, while offering industry more flexibility and a range of cost-effective options to meet the requirements of the industrial price on carbon pollution.

. A federal offset system creates market opportunities for small businesses as well as sectors such as agriculture, waste and forestry to provide climate solutions, while offering industry more flexibility and a range of cost-effective options to meet the requirements of the industrial price on carbon pollution. A discussion paper on how to return the direct proceeds from the federal price on pollution for industry (OBPS). Under the federal system, all direct proceeds from pricing carbon pollution will be invested in the province or territory they came from. The discussion paper invites comment on how best to re-invest the proceeds from the federal price on pollution for industry.

The new elements announced today are part of Canada’s comprehensive plan for climate action and clean growth. Along with more than 50 other measures in Canada’s climate plan, the regulations and policies announced today will help reduce carbon pollution, protect competitiveness, spur innovation, and grow the economy.

In the 21st century, protecting the environment and growing the economy must go hand in hand. By taking action, Canada is building a safer and more prosperous future for our children and grandchildren.

