New Details on Application of Federal Carbon-Pricing Backstop

  • November 16, 2018
  • Andrew T.R. Chachula, Sarah E. Gilbert and Thomas W. McInerney

On October 23, 2018, the federal government made further announcements regarding the federal carbon-pricing backstop (the “Backstop”), providing details on where the pricing system will apply and how the revenues for those provinces and territories will be used. The Backstop implemented pursuant to the Greenhouse Gas Pollution Pricing Act, SC 2018, C-12, s 186 (the “Act”) ensures a national carbon-pricing system is in place that applies to greenhouse gas emissions (“GHG”) from a broad set of sources.

Canada signed on to GHG reduction targets as part of the Paris Climate Accord in 2015. The federal Backstop and associated provincial carbon-pricing strategies are part of the federal government’s plan to meet those objectives.