Natural-Gas Plants to Pay Carbon Emission Tax by 2030

09 August 2019

The Canadian federal government has announced it plans to increase the carbon tax on new natural-gas plants in an effort to discourage power companies from building them.

This tax is part of the final set of regulations for the government’s carbon-tax system for big industrial greenhouse-gas emitters. The system will affect businesses that produce more than 50,000 tonnes of GHG annually.

Ideally, it will limit the impacts on competitiveness for major industrial emitters, who will pay the carbon tax on a portion of what they emit rather than on all the fuels they use. 

New natural-gas plants can expect emissions standards to toughen each year after 2021, until in 2030, when they will be required to pay the carbon price on every ounce of their emissions.