On October 3, 2016, Prime Minister Trudeau announced that the federal government will set a minimum price on carbon starting at $10 per tonne in 2018, and increasing by $10 per year for the next four years until it reaches $50 per tonne by 2022. Each province will be required to implement carbon pricing in its jurisdiction within two years – whether in the form of a carbon tax or a cap-and-trade system – which must meet the federal minimum price. Otherwise, the federal government will impose a tax that makes up the difference and return the revenue to the province. In addition, provincial emission reduction goals for reducing emissions must be at least as stringent as federal targets. Currently, Canada’s four biggest provinces – Ontario, Quebec, Alberta and British Columbia – have carbon pricing plans in place.
The Prime Minister said he will convene a first ministers’ meeting on December 8 with the aim of concluding a pan-Canadian climate plan, which would include carbon pricing and other measures.