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Government Carbon Pricing Announcement

January 16, 2018

On January 15, the federal government issued its legislative proposals for the next step in implementing carbon pricing.  Here is the news release with links to the background paper and other documents. 

FMA has not yet had an opportunity to review in detail and notes that the government is looking for feedback on the proposals as follows. 

Comments on the draft legislative proposals to implement the federal carbon pricing system are welcome until February 12, 2018, at carbonpricing-tarificationcarbone@canada.ca

Comments on the regulatory framework are welcome until April 9, 2018, at ec.tarificationducarbone-carbonpricing.ec@canada.ca

The government’s overall approach is divided as follows. The federal carbon pricing system has two elements: 

  1. A charge on fossil fuels (e.g., gasoline, diesel, propane, natural gas), which would be paid by fuel producers or distributors.
  2. An output-based pricing system for industrial facilities with high levels of emissions.

Yesterday’s announcement appears to focus on bullet 2 and the backgrounder mentions it will target companies in the following industries where annual GHG output emissions are above 50,000 tonnes of carbon dioxide per year.  The targeted industries are as noted in the following paragraph from the Backgrounder. 

The government would start by developing output-based standards for the following industrial sectors: oil and gas, pulp and paper, chemicals, nitrogen fertilizers, lime, cement, base metal smelting and refining, potash, iron ore pelletizing, mining, iron and steel, and food processing. 

In the future, the government may develop output-based standards for additional sectors. The government is considering how to apply carbon pricing to offshore oil and gas and to electricity generation. 

FMA will review the material and make recommendations to the membership regarding possible feedback to the government on impacts the recommendations may have on freight transportation beyond the carbon pricing now in effect in Ontario, Quebec, Alberta and British Colombia.

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Freight Management Association of Canada
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Phone: (613) 599-3283
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