Eliminating industrial carbon pricing in Canada risks billions in assets and failure to meet climate target

Rick Smith, president of the Canadian Climate Institute recently made a statement on the importance of industrial carbon pricing for cutting carbon pollution and creating a competitive clean economy. 

Research indicates that if maintained, Canada’s industrial carbon pricing system could be more effective than any policy in cutting emissions over the next 5 years. This means that eliminating industrial carbon pricing in Canada would actually both hinder our country's ability to reduce emissions, while also weakening competition in these industries. 

By imposing minimal additional costs and encouraging investments in cleaner technologies and efficient energy, these systems protect trade-exposed industries. Not to mention, industrial carbon pricing creates lucrative credit markers which attract investment to Canada for low-carbon products, such as clean steel and low-carbon chemical manufacturing. Not only would removing these systems undermine Canadian exports to key trading partners, but it could jeopardize approximately $5 billion in credit values in Alberta alone. 

Maintaining industrial carbon pricing is critical for Canada to reach its climate objectives. Without them, there would be uncertainty, and our nation would fall behind in the evolving global economy and the other countries which are introducing carbon tariffs that give low-carbon producers a competitive advantage. These research updates from the Canadian Climate Institute make it clear: eliminating federal industrial carbon requirements would leave Canada without a viable climate strategy, impeding our ability to meet 2030 targets, and would harm the country's international reputation rather than strengthen it. 

Written by Sabrina Careri for Ann Dale

Photo credit: Marcin Jozwiak from Unsplash