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OTTAWA — Canada will either have to raise carbon prices to $210 per tonne or adopt more expensive policies funded by higher income taxes to meet its 2030 Paris targets, says an environmental economics group in a new report.

Canada’s Ecofiscal Commission finds carbon pricing is the most cost-effective way for Canada to hit its targets, but also acknowledges that carbon taxes can be politically unpalatable. The report, embargoed until Wednesday, sets out other options for meeting the Paris targets that use a combination of regulations and subsidies, but it cautions that those measures could cost much more.

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“At this point, (governments) have told us they want to achieve 2030 emissions targets, but they haven’t yet put policies in place to get us there,” said Chris Ragan, chair of the Ecofiscal Commission, in an interview. “Actions, I think, count louder than words at this point.”

The Liberal government insists it’s committed to meeting Canada’s target under the Paris Agreement, a reduction of greenhouse gas emissions to 30 per cent below 2005 levels by 2030. During the election campaign, Prime Minister Justin Trudeau also announced plans to make Canada carbon neutral by 2050. But the Liberals have not explained how they plan to make that happen. Ottawa’s latest projections show the government’s existing climate plan will still fall 79 megatonnes short of the Paris target.