Carbon NewsCarbon Pricing in Canada – Would it Work?

Carbon Pricing in Canada – Would it Work?



Carbon Pricing mechanisms are still new ideas in the scope of reducing carbon emissions. The EU and China both have outlined plans to tax carbon in different ways. Canada itself does have a carbon tax in place, however foreign carbon pricing could affect Canada’s industry in a negative way, according to a report by the Royal Bank of Canada.

The report states that foreign tariffs on carbon would hurt the Canadian economy. Extra fees on exporting goods are never good for the economy. As an example, the EU plans on tackling climate change involves tariffs on industries that produce high level of carbon emissions. The industries targeted are aluminum, cement, iron and steel, fertilizers, and electricity.

For now, none of those industries are major Canadian exports to the EU however times change and the race against climate change is heating up. The UN released a report urging significant actions to stop climate change. Further industries could be affected, ones that will reduce trade between Canada and the EU.

Another major concern is how the U.S. will apply its own carbon plans. Any carbon pricing or tariffs on Canadian exports to the U.S. would be a huge blow to the economy. Hindering any trade with the U.S. would reduce trade with Canada’s largest trading partner. Another possibility is a North American carbon tariff as to not isolate Canadian trade.

Most Popular



LATEST CARBON NEWS

What is SMR? The Ultimate Guide to Small Modular Reactors

Energy is the cornerstone of modern life. We need electricity for healthcare, transportation, communication, and more. Many countries are choosing nuclear power because it...

Core Power to Drive Net-Zero Shipping with Mass-Produced Floating Nuclear Power Plants

Core Power, the UK nuclear technology firm, has recently launched the Liberty Programme to transform the maritime sector with advanced nuclear technology. This "US-anchored"...

Carbon Credits Surge: $16B Fuels 2024’s Race for High-Quality Offsets

Carbon credits are increasingly essential for investors and businesses aiming to reduce emissions. According to Abatable’s latest report, the voluntary carbon market (VCM) is...

What Is Carbon Dioxide Removal? Top Buyers and Sellers of CDR Credits in 2024

The world must remove 5–16 billion metric tons of CO₂ annually by 2050 to limit global warming to 1.5°C. But with emissions still rising,...
CARBON INVESTOR EDUCATION

What is SMR? The Ultimate Guide to Small Modular Reactors

Energy is the cornerstone of modern life. We need electricity for healthcare, transportation, communication, and more. Many countries are choosing nuclear power because it...

What Is Carbon Dioxide Removal? Top Buyers and Sellers of CDR Credits in 2024

The world must remove 5–16 billion metric tons of CO₂ annually by 2050 to limit global warming to 1.5°C. But with emissions still rising,...

Top 5 Carbon ETFs for Sustainable Investing in 2025

Like stocks, investors can buy and sell Exchange-Traded Funds (ETFs) whenever the market is open. Often investing in carbon credits through ETFs offers a...

Is the Voluntary Carbon Market Dead?

The Voluntary Carbon Market (VCM) has been a vital tool for combating climate change, enabling organizations to offset emissions by funding projects that reduce...