The Canadian government plans to soften the impact of the upcoming carbon tax on major emitter of greenhouse gas (GHG) and has cut the initial proposed levy on 30% of industrial emissions to 20% for the majority of sectors and 10% for vulnerable industries such as cement, steel and iron. The initial charge of CAD20/tCO2eq (US$15/CO2eq) will be applied in January 2020 and rise to CAD50/tCO2eq (US$38/CO2eq) by 2022.
Canada's nationwide climate-change strategy currently includes a carbon tax, which will be imposed on provinces that do not have set their own carbon pricing system. This move is a key pillar in Canada’s strategy to meet its Paris Agreement target of reducing greenhouse gas emissions (GHGs) by 30% below 2005 levels by 2030.
As of January 2018, four provinces covering 80% of the Canadian population (Alberta, British Columbia, Ontario and Quebec) have implemented a carbon pricing system and all provinces have committed themselves to adopt a carbon pricing system in the future. In July 2018, Canada's Northwest territories announced the introduction of the carbon tax in 2019.
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