New federal analysis reaffirms carbon pricing significantly reduces carbon pollution while maintaining a strong economy

Pembina Institute reacts to Environment and Climate Change Canada’s estimated impacts of the federal carbon pollution pricing system

OTTAWA — Isabelle Turcotte, federal policy senior analyst at the Pembina Institute, made the following statement in response to the release of ECCC’s estimated impacts of the federal carbon pricing system:

“The Government of Canada’s analysis of the impact of applying a price on carbon pollution in every province and jurisdiction confirms what we already knew: carbon pricing works. It reduces pollution at the lowest cost to businesses and consumers.

“According to the federal government’s modelling, a price on carbon could cut carbon pollution by 80 to 90 million tonnes by 2022, once all provinces and territories have systems that meet the federal standard. Our analysis using the energy policy simulator tool shows numbers in the same ballpark but that even larger reductions are achievable.

“The government’s analysis also shows that GDP growth would remain strong with pan-Canadian carbon pricing, with no significant impact on national economic growth rates, even without considering benefits such as innovation, investments in clean technology and long-term growth opportunities that this measure incentivizes. By sending clear signs to investors, a price on carbon pollution with a planned increase also translates into new jobs in the low-carbon economy.

‘‘Carbon pricing is common practice and just one part of Canada’s comprehensive climate plan. We look forward to seeing an ambitious federal backstop, with a rising price past 2022. Additionally, we expect to see the Canadian government continue to work with provinces and territories to ensure that carbon pricing systems in every jurisdiction align with our national commitment under the Paris Agreement and with creating a competitive economy.’’



Op-ed: Time to move past carbon price repeal debate (April 2018)

Policy SimulatorTry out your climate policy ideas (March 2018)

Op-ed: Four provinces outperformed the rest, all while pricing pollution (January 2018)

Submission: Pembina Institute comments on federal carbon pricing technical paper (June 2017)

Backgrounder: Putting a price on carbon across Canada  (May 2017)


Kelly O’Connor 
Acting Communications Director

Isabelle Turcotte
Senior Analyst, Federal Policy

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