Prime Minister Justin Trudeau says the federal Liberal government will establish a “floor price” on carbon pollution of $10 a tonne in 2018, rising to $50 a tonne by 2022.
Trudeau is making the announcement as he kicks off a debate in the House of Commons over whether Canada should ratify the Paris accord on climate change.
He says provinces and territories will have the option of either putting a direct price on carbon a carbon tax or implementing a cap-and-trade system “stringent enough” to meet or exceed the federal target.
The news also comes as provincial environment ministers meet in Montreal with federal counterpart Catherine McKenna to hash out an agreement over carbon pricing.
Saskatchewan Premier Brad Wall has consistently maintained that his province cannot currently afford a carbon tax, a point reiterated today by his environment minister Scott Moe.
And Yukon environment minister Currie Dixon said the three northern territories all object to the plan as well.