This submission responds to the federal discussion paper "Driving Effective Carbon Markets in Canada." It focuses on strengthening the Greenhouse Gas Pollution Pricing Act (GGPPA), a key component of Canada’s carbon pricing framework.
The paper notes that while carbon pricing is an important tool for reducing greenhouse gas emissions, even if it functioned consistently and effectively across the country, it would still not be enough to help Canada meet its climate targets.
The submission concentrates on the Output-Based Pricing System (OBPS), which applies to large industrial emitters. It argues that the OBPS should operate as a clear national minimum standard and that its application should not be subject to political discretion. To support this, the main recommendation is to amend the GGPPA to require the OBPS to apply in provinces and territories where subnational carbon pricing systems do not meet the federal benchmark standard.