SLIDE 1
Canada’s Carbon Pricing Landscape
CARBON PRICING FORUM A DRIVER OF INNOVATION & RISK MITIGATION Washington DC March 19, 2019
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Different Carbon Prices
A Fragmented Market
- Pricing will differ between provinces.
- Ontario and Quebec will see the price differential
- increase. The Ontario Delinkage has decreased our WCI
price forecast.
- The Federal Backstop system will allow the use of surplus
credits as well as offsets that can be sourced across Canada for up 100% in 2019-2020 and 75% in 2021- 2022.
- Offsets are expected to be scarce in the first years due to
the fact that no offset system was yet implemented at the Federal level and that offsets from AB and BC might not be attracted by the lower priced Federal system.
- The demand for offsets in the Federal system is expected
to be around 6M/year.
- ITMOs are mentioned in the Made in Saskatchewan
Climate Change strategy and the OBPS doesn’t exclude them.
- Arbitrage opportunities may arise. The CFS to be
implemented in 2022 will also add to this complexity.