Canada is establishing a unique, two-tiered approach to climate change regulation. At the federal level, there is a proposed national carbon pricing policy which sets a minimum price on greenhouse gas emissions throughout Canada. This is supplemented by several provincial initiatives, which have established various mechanisms to tax, price or otherwise set limitations on greenhouse gas emissions – including intensity-based emissions reductions legislation, absolute cap-and-trade based systems, and simple tax-based structures.
For businesses with operations in multiple Canadian jurisdictions, it is important to closely monitor developing climate change regulations. Large greenhouse gas emitters, such as oil sands producers, mine operators, LNG exporters and coal producers, will be challenged to find the most efficient and cost-effective ways to comply with the diverse and ever-evolving regulations. For some, these regulations also present significant opportunities for the market-supported development of renewable power production, cogeneration facilities, operational efficiency measures and emissions offset opportunities.
The infographic below provides highlights of emissions legislation across Canada.