Tuesday, 31 January 2023
As of January 2023, Nova Scotia will begin replacing its cap-and-trade system with an output-based pricing system in order to comply with federal carbon pricing regulations. The Canadian province will conduct two more auctions in 2023 as well as a Reserve sale to allow compliance entities to obtain carbon allowances for any outstanding emissions.
In 2018, the Canadian federal government under Prime Minister Justin Trudeau, implemented a national carbon pricing backstop system intended to reduce greenhouse gas emissions throughout the country. Under the regulation, each Canadian jurisdiction must implement either a price-based system (such as a carbon levy in conjunction with an output-based pricing system) or a cap-and-trade system. In response to the requirement, Nova Scotia implemented a province-wide cap-and-trade s...