Federal carbon pollution pricing system
Manitoba had initially proposed a climate change plan that included a flat carbon price of $25 per tonne of carbon dioxide (CO2) equivalent emissions; however, it was advised by the federal government that its plan did not meet the federal benchmark. In October 2018, Manitoba announced that it would no longer seek to establish and implement its own carbon pollution pricing system. As of 2019, the federal carbon pollution pricing system under the federal Greenhouse Gas Pollution Pricing Act (the Act) applies in the province.
The Act contains the following features:
- The federal output-based pricing system applies to electricity generation and natural gas transmission pipelines. It covers facilities from sectors that emit 50,000 tonnes CO2 equivalent per year or more.
- Smaller facilities that emit 10,000 tonnes of CO2 equivalent per year or more may voluntarily opt in to the system over time.
- A charge applies to fossil fuels, generally paid by registered distributors (fuel producers and distributors).
The federal system prices pollution at a rate of $20 per tonne of CO2 equivalent emissions in 2019. This amount will gradually rise to $50 per tonne by 2022.
Potential court challenge
Manitoba has announced that it plans to challenge the constitutionality of the federal carbon pollution pricing system.