An industrial carbon pricing system is a market-based policy that puts a direct price on greenhouse gas emissions from industry, creating financial incentives for companies to reduce their carbon footprint. It is one of the most effective ways to reduce emissions by making pollution expensive and by allowing businesses the flexibility to find the most cost-effective way to reduce emissions. By making use of the market, it sends a powerful price signal that encourages companies to invest in cleaner technologies, improve energy efficiency, reduce dependence on fossil fuels, and develop new processes that generate fewer emissions. It also generates revenue that can be reinvested in climate solutions or returned to citizens, making it politically viable.

ORCIE contributed to the government of Canada review of its Output-Based Pricing System (OBPS) regulations by submitting a letter to Minister Julie Dabrusin outlining recommendations to strengthen Canada’s carbon pricing framework. The submission comes at a pivotal moment when Canada’s climate action efforts must address the intertwined crises of climate change, biodiversity loss, and social marginalization. For example, one essential piece of these regulations is the need for increased transparency.
‘The current transparency requirements in the OBPS framework are a challenge for Canadians who want to understand how we are using carbon pricing revenues and whether they benefit the common good. Increasing transparency by including detailed information on provincial systems and comparisons to benchmarks in annual carbon pricing reports will go a long way to helping the public understand the actual emission reductions achieved and how they compare to climate science requirements. This aligns with the Supreme Court’s recognition that climate change constitutes a matter of national concern requiring coordinated action.’
In the letter ORCIE offers feedback and practical measures so that Canada can create a carbon pricing system that drives genuine emissions reductions while building the public trust and political consensus necessary to meet the scale and urgency of the climate crisis.
For more information visit Canadian Climate Institute for their fact sheet How industrial carbon pricing reduces emissions at minimal cost and additional analysis.





