The Canadian government has issued a technical paper for consultation that outlines a proposed federal carbon pricing option for provinces that choose not to have their own system in place in 2018. The so-called federal carbon pricing backstop would be introduced through new legislation and regulations and would entail two key elements:
- A carbon levy applied to fossil fuels; and
- An output-based pricing system for industrial facilities that emit above a certain threshold, with an opt-in capab…