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ClearBlue Attends Environment and Climate Change Canada Federal Backstop Engagement Session

Ottawa looks to relax benchmarks under Canadian carbon pricing programme

The Canadian government may relax industry production benchmarks under its output-based carbon pricing system (OBPS), which forms part of its backstop carbon pricing plan, as well as introduce a similar metric for the power sector, it said at a workshop on Wednesday.

In addition to a levy on fossil fuels, the federal government’s backstop plan under the pan-Canadian Framework includes an OBPS that would regulate facilities emitting in excess of 50,000 tonnes of CO2e per year, with an option for entities emitting over 10,000 tonnes to participate voluntarily.

According to an update by Toronto-based consultants ClearBlue Markets, Environment and Climate Change Canada (ECCC) is looking at increasing the output-based production benchmarks to 80% of the production-weighted emissions average for all sectors, rather than the 70% level floated originally.

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