Carbon Pricing

Carbon pricing continues to gain momentum worldwide, as underscored by the World Bank’s 2024 State and Trends of Carbon Pricing report, which highlights the total number of operational carbon pricing mechanisms globally at 75, with nearly one quarter of global emissions covered by a carbon price.

Putting a price on carbon pollution is widely recognized as the most efficient means to reduce greenhouse gas emissions. Adopting carbon pricing can align economic incentives with low-carbon objectives and drive investment in clean innovation and technology. Furthermore, carbon pricing is flexible and can adapt to the unique circumstances of each jurisdiction by tailoring and addressing affordability, income distribution, and competitiveness impacts.

This independent study aims to capture lessons learned in the design and implementation of market-based mechanisms for reducing greenhouse gas emissions. Canada’s experience with domestic carbon pricing serves as a valuable case study.

Task Force: - Topic: Climate Year: 2024 Phase: Phase VII (2022-2027) Concluded