Environment and Climate Change Canada has launched a national engagement process on proposed changes to the minimum national stringency standards for industrial carbon pricing, known as the federal benchmark criteria. Input gathered through this engagement will inform updates to the benchmark in 2026, with the aim of ensuring that industrial carbon pricing systems across Canada continue to drive meaningful emission reductions while providing long-term certainty for decarbonization investments and maintaining the global competitiveness of Canadian industries.
The initiative reflects the government’s position that climate action is both an environmental responsibility and an economic necessity. As global markets shift toward cleaner production, Canada’s ability to compete will increasingly depend on strong and credible climate policies. Industrial carbon pricing is a central element of Budget 2025’s Climate Competitiveness Strategy, encouraging large emitters to reduce greenhouse gas emissions while managing costs and limiting the risk of carbon leakage.
Well-designed carbon pricing systems are intended to create economic opportunities by enabling businesses to generate value from investments in cleaner production. Pollution pricing and complementary climate policies are already driving demand for clean technologies, helping to attract investment, create jobs, and expand new business opportunities. Canada’s clean technology sector remains a significant contributor to economic growth, supporting tens of billions of dollars in GDP and hundreds of thousands of jobs.
The Climate Competitiveness Strategy aims not only to cut emissions but also to strengthen economic resilience, create quality employment, protect affordability, and position Canada as a leader in the global clean energy transition. Clear, predictable, and long-term policy signals are designed to give investors confidence while helping Canadian industries remain competitive in a rapidly evolving global economy.
Evidence shows that industrial carbon pricing is one of the most cost-effective tools for reducing emissions, with studies indicating minimal direct impact on households. By strengthening carbon markets and supporting innovation, the government seeks to promote long-term prosperity while advancing climate objectives.
The Government of Canada has emphasized that collaboration with provinces and territories will remain essential as it works to strengthen industrial carbon markets. Through continued cooperation and engagement, the government aims to align economic growth with environmental responsibility and support a sustainable and prosperous future for the country.
