Canada Pipeline and Climate Goals: The Role of Industrial Carbon Pricing

A new analysis from the Canadian Climate Institute suggests Canada could build a new pipeline from Alberta to the West Coast and still meet its emissions targets. However, this depends on a strict industrial carbon pricing regime that prevents the oversupply of offset credits and ensures a higher real cost for polluters. The study highlights a critical gap between headline carbon prices and actual market prices. By tightening rules on credit generation and increasing the price floor, the government could potentially offset the emissions of a new pipeline by forcing industrial reductions of up to 40 megatonnes by 2050.