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The Pembina Institute strongly supports the federal government’s determination to move forward, in partnership with the provinces and territories, with pricing carbon pollution across Canada. A national carbon price backstop is essential to fulfilling Canada’s international commitments as a signatory to the Paris Agreement. Just as importantly, carbon pricing will be critical to enhancing Canadian competitiveness and innovation in the emerging low-carbon global economy.

We believe the Government of Canada is striking the right balance in promoting a flexible, yet consistent approach to carbon pricing, as illustrated in its “benchmark” requirements. By encouraging provinces and territories to implement their own carbon pricing systems, subnational governments can ensure that the systems they enact are best-fitted to the economic base of their respective jurisdictions.