Saskatchewan has released regulations aimed at curbing industrial emissions after the federal government agreed to remove the province from the federal output-based pricing system (OBPS).
The OBPS imposes a tax on large emitters when they exceed caps on greenhouse gas (GHG) emissions. The national carbon pollution price schedule will see industrial emitters pay $65 per tonne of excess emissions in 2023 – an amount that will rise to $170 per tonne by the year 2030.
Last year, the federal government agreed to remove Saskatchewan from the federal OBPS after the province presented its own plan to reduce emissions aligned with the federal carbon pricing benchmark. This plan will ensure industrial carbon taxes remain in Saskatchewan.
Saskatchewan has now released the Management and Reduction of Greenhouse Gases (Standards and Compliance) Regulations, 2023, detailing how the province’s emissions reduction plan will work, including compliance obligations for regulated emitters.
The province plans to incentivize investments in clean technology through grants issued by the Saskatchewan Technology Fund, which will provide funding for qualifying projects that aim to mitigate, sequester or capture GHG emissions.
Now that Saskatchewan has released regulations aimed at curbing industrial emissions, the next step is for the federal government to officially remove the province from the federal OBPS regime.
We’ll continue to monitor this space and report on future developments. In the meantime, if you have questions about what these regulations will mean for your organization, contact us to learn more.
Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.