The Greenhouse Gas Pollution Pricing Act establishes a federal price on greenhouse gas (GHG) emissions beginning in January 2019 and applying to any province or territory of Canada that requests the price, or to any province or territory of Canada that has not implemented a compliant carbon pricing regime.The GHG pollution prices set out in this law start at C$20 per ton in 2019, although they rise by C$10 per ton annually until a maximum of C$50 per ton in 2022. From 2024-25, the carbon price was $80 per tonne. According to the law, producers, distributors and importers of fossil fuels and combustible waste must register and file monthly reports and returns showing that they have paid the net taxes for the fuels and waste they produce, distribute or import.
On 15 March 2025, Regulations Amending Schedule 2 to the Greenhouse Gas Pollution Pricing Act and the Fuel Charge Regulations: SOR/2025-107 were issued, effectively removing price on GHG emissions with effect from 31 March 2025. The intention was to ensure industrial pricing systems continue to maximise emissions reductions and encourage the transition to low carbon technologies, while protecting industry against competitiveness and carbon leakage impacts.
