Session 1 presentation from the 1st Strategic Dialogue of the Carbon Market, 16-17 June 2016

1. Role of carbon pricing in
achieving NDC objectives:
Canada’s perspective
Carbon Market Platform
Lynda Danquah
June 16-17, 2016

2. Page 2 – January 22, 2021
Current Approach to Climate Change
• Environment is shared jurisdiction in Canada
• Government of Canada has implemented regulations for key
sectors
– Light duty and heavy duty vehicles
– Coal-fired electricity generation
– Renewable fuels
– Energy efficiency standards
• Four largest provinces have some form of carbon pricing
– British Columbia: carbon tax CA$30/tonne
– Alberta: baseline-and–credit emission trading for large emitters;
announced plans to move towards economy-wide carbon pricing
– Quebec: economy-wide cap-and-trade system, linked with California
– Ontario: economy-wide cap-and-trade proposed to begin in 2017;
intends to link with Quebec and California in 2018

3. Page 3 – January 22, 2021
First Ministers’ Agreement
• On March 3, First Ministers released a joint declaration on climate
change
– Agreed to work together to develop a pan-Canadian framework on
clean growth and climate change before the end of the year
• First Ministers have established four working groups:
– Clean technology, innovation and jobs
– Carbon pricing mechanisms
– Specific Mitigation opportunities
– Adaptation and Climate Resilience

4. Page 4 – January 22, 2021
Implementation Plan (cont’d)
• WG on Carbon Pricing Mechanisms:
– Options on the role of carbon pricing mechanisms in meeting Canada’s emission
reduction targets
▪ Including different design options and taking into consideration existing and planned
provincial and territorial systems
– Consider elements of carbon pricing, such as:
▪ Coverage,
▪ Comparability and stringency, and
▪ International trends in carbon pricing and markets
– Consider the effectiveness and efficiency of carbon pricing mechanisms
– Take account of particular challenges, such as those facing northern and remote
communities
– Address issues of particular importance to industry and investors
▪ Predictability, interprovincial and international competitiveness
– Jointly overseen by Ministers of Finance and Ministers of Environment

5. Page 5 – January 22, 2021
Canada as a federation
• Canada faces some of the same issues domestically as the international
community is grappling with, such as:
– How to build from a variety of provincial approaches towards a nationally
coherent plan
– Developing robust approaches to tracking internationally transferred mitigation
outcomes
▪ International transfer of units between Quebec and California
– How to develop a framework that builds momentum towards an ambitious
outcome without locking-in every detail
Web portal: www.canada.ca/climateaction