Carbon pricing for the Paris target: closing the gap with output-based pricing

This report updates and extends PBO’s analysis of the additional carbon pricing needed to achieve Canada’s greenhouse gas (GHG) emissions target in 2030 under the Paris Agreement. Under the Paris Agreement, Canada has committed to reduce its GHG emissions by 30 per cent below 2005 levels by 2030. Based on current data, this translates into a level of 511 megatonnes (Mt) of CO2 equivalent. Based on current policies and measures that have been announced, but are not yet fully implemented, Environment and Climate Change Canada (ECCC) projects that Canada’s GHG emissions will decrease from 716 Mt in 2017 to 588 Mt in 2030, after accounting for the contribution of the Land Use, Land Use Change and Forestry (LULUCF) sector.