Canada's industrial carbon pricing framework could be headed for significant changes following a new agreement between the federal government and Alberta, which would establish a revised carbon pricing trajectory for Alberta's Technology Innovation and Emissions Reduction (TIER) program. The agreement has raised questions about how the federal government may update the Greenhouse Gas Pollution Pricing Act (GGPPA) and whether other provinces could seek similar arrangements.

Speaking recently with Carbon Pulse, Liane Langstaff, a partner in Gowling WLG's Environmental Law Practice Group, discussed the constitutional and policy implications of the proposed changes. She noted that while the federal government retains the authority to establish a minimum national standard under the GGPPA, provinces and territories remain free to adopt more ambitious pricing systems should they choose to do so.

“The point is to create a system where everyone can expect the same minimum carbon price across the country, although a province or territory might decide to have a higher carbon price—if that’s what voters want.”

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