Federal Carbon Price Schedule 2023–2030

Summary#

This is the Order Amending Schedule 4 to the Greenhouse Gas Pollution Pricing Act. It sets the federal carbon charge per tonne of CO2 equivalent for each calendar year from 2023 through 2030, rising from $65 in 2023 to $170 in 2030. The order came into force on registration, October 11, 2022.

What it does#

• Adds new entries to Schedule 4 of the Greenhouse Gas Pollution Pricing Act that fix the charge per tonne of CO2e for each year:
  • 2023: $65 per tonne
  • 2024: $80 per tonne
  • 2025: $95 per tonne
  • 2026: $110 per tonne
  • 2027: $125 per tonne
  • 2028: $140 per tonne
  • 2029: $155 per tonne
  • 2030: $170 per tonne
• States that the order is in force as of its registration date (October 11, 2022).

Who's affected#

• People and businesses that are subject to the federal carbon pricing system under the Greenhouse Gas Pollution Pricing Act are most likely to notice this change.
• That typically includes fuel suppliers and large industrial emitters, and indirectly the businesses and households that buy fuel or energy from them.
• Exact impacts depend on whether a province or territory has its own carbon pricing system and on specific rules and exemptions; the order itself does not list those details.

Why it matters#

• The order raises the per-tonne price of greenhouse-gas emissions each year through 2030, which increases the cost of fuels and activities that emit carbon for those covered by the federal system.
• Higher charges create a stronger financial incentive to reduce emissions, invest in cleaner technologies, or use less fuel.
• For consumers and businesses, this can mean higher prices for fuel and energy-related goods or services, but the actual effect will vary by location and by whether local programs offset or pass through those costs.