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Federal Government Updates Industrial Carbon Pricing Benchmark Trajectory

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CC 4.0 Joli Rumi

The federal government has updated the headline price trajectory for industrial carbon pricing systems assessed under the federal carbon pricing benchmark. As of May 15, 2026, the headline price trajectory per tonne of CO₂e emissions for industrial carbon pricing systems is as follows: The updated trajectory is lower than the previous federal benchmark pathway through 2030, and extends the headline trajectory to 2040. A full updated federal benchmark is expected to be published later in 2026. The federal government has stated that the updated trajectory takes into account feedback from provinces, territories, industry, and other stakeholders, and is intended to provide longer-term certainty to support major decarbonization projects. The updated trajectory was announced days after the Canada-Alberta MOU Implementation Agreement, which applies the same trajectory to Alberta’s Technology Innovation and Emissions Reduction (TIER) system and includes related commitments on annual benchmark stringency rates, a regulated minimum transfer price for TIER credits (i.e., a price floor) beginning in 2030, limits on direct investment credits, and carbon contracts for difference for eligible emissions-reduction investments. The benchmark announcement does not, by itself, amend the excess emissions charge under the federal output-based pricing system (OBPS), which is set out in Schedule 4 to the Greenhouse Gas Pollution Pricing Act. We anticipate that, if the federal OBPS charge is to be aligned with the updated trajectory, further implementation would follow, including through an Order-in-Council amending Schedule 4. For further information or to discuss the contents of this bulletin, please contact Lisa DeMarco at lisa@resilientllp.com or Jonathan McGillivray at jonathan@resilientllp.com. Image: CC 4.0 Joli Rumi

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Federal Government Announces Forthcoming National Electricity Strategy

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CC2.0 Camille King

Prime Minister Mark Carney announced on May 14, 2026, that the federal government is launching consultations on a forthcoming National Electricity Strategy (the “Strategy”), intended to support a doubling of Canada’s electricity grid capacity by 2050, a national grid, jobs and training, and domestic manufacturing. The consultations are expected to include provinces, territories, Indigenous Peoples, utilities, unions, industry, and training partners. The federal government identified four main pillars of the Strategy: Building infrastructure to double Canada’s electricity generation, including generation, transmission, distribution, storage, and grid modernization. Connecting Canada’s electricity grids East-West-North through new and expanded transmission lines, including work to address barriers to interprovincial interties. Training, attracting, and retaining workers needed to build and maintain the grid, with the announcement stating that more than 130,000 high-skilled workers may be required by 2050. Supporting domestic manufacturing of technologies and components used in Canada’s electricity system. The Prime Minister’s Office expressly indicated that the federal government intends to adjust the Clean Electricity Regulations to provide additional flexibility, including in relation to natural gas, while pursuing emissions reductions and reliability and affordability objectives. The announcement highlights several electricity projects being advanced through the Major Projects Office, including the Taltson Hydro Expansion, the Iqaluit Nukkiksautiit Hydro Project, Darlington New Nuclear, the North Coast Transmission Line, and Wind West. The federal government also indicated that development of a new Transmission InterConnect Investment Strategy is expected to be referred to the Major Projects Office. The announcement also indicates that the federal government intends to expand support for energy-saving retrofits for up to one million households, including measures to support the transition from propane, oil, and electric baseboard heating to electric heat pumps. The Strategy is expected to be developed over the coming months and be tied to the Alberta MOU, which is anticipated to be released…

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Carney Government Eliminates Consumer Carbon Price

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The Government of Canada on Saturday published an extra edition of Canada Gazette, Part II to eliminate the “consumer-facing” carbon price (i.e., the federal fuel charge), effective April 1, 2025. The change was originally announced by new Prime Minister Mark Carney on Friday as his first official act. The new regulations amend the Greenhouse Gas Pollution Pricing Act (GGPPA) and related regulations. This bulletin briefly summarizes the amendments and highlights key aspects of the associated Regulatory Impact Analysis Statements (RIASs). The amendments most consequentially set the rate of charge applicable after March 31, 2025 set out in Table 5 of Schedule 2 to the GGPPA to “zero” dollars for all 22 types of fuel. The rates previously set out in that table represented a carbon price of $80 per tonne in 2024-25. The Governor in Council (i.e., the Governor General acting on the advice of Cabinet) has the authority to set the fuel charge rates to zero under section 166(4) of the GGPPA. The government has also made related amendments to the Fuel Charge Regulations (particularly around removal of registration requirements after March 31, 2025) and coordinating amendments to the Output-Based Pricing System (OBPS) Regulations.  The RIASs note that: The government estimates that the elimination of the fuel charge will lead to a loss of 12.57 Mt cumulative GHG emissions reductions from 2025 to 2030 (p. 12). The monetized cost of foregone emissions reductions over the 2025-2030 period of the elimination of the fuel charge is estimated to be about $3.83B (in 2024 dollars, discounted at 2% to 2025-26), using social cost of carbon figures for 2025 to 2030 (p. 13). The elimination of the fuel charge increases Canada’s GDP by 0.5% in 2030 (p. 14). The total welfare gains, not accounting for the social cost of carbon, for households would be equivalent to a 0.3% increase in household consumption in…

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Resilient LLP Welcomes Jonathan McGillivray as Partner

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Resilient is pleased to announce the addition of Jonathan McGillivray as a partner, effective June 11, 2024. “Jonathan is a long-standing member of the Resilient team, and we are thrilled to welcome him as a partner and celebrate this significant milestone with him,” said Lisa DeMarco, Senior Partner and CEO of Resilient. “Jonathan’s addition to the partnership affirms our focus on excellence in client service and our commitment to resilient growth.” Jonathan’s practice extends to all aspects of climate change and clean energy law. He advises on a variety of mandates driven by the transition to a net-zero economy and assists our domestic and global clients on climate strategy, decarbonization initiatives, carbon finance, innovative carbon transactions (including emission reduction and carbon removal purchase agreements and sustainable fuels agreements), biodiversity transactions, and energy regulatory compliance. He also advises proponents, investors, standards, and other organizations on carbon markets investments, governance, and regulatory compliance. “I am excited to be continuing my career at Resilient as a partner,” said Jonathan McGillivray. “I’m looking forward to continuing to contribute to Resilient’s global climate and energy practice and assisting our clients navigate the transition to a net-zero economy. I want to thank my mentors and colleagues for helping me to reach this important career milestone and my family for their endless support.” About Resilient LLP Resilient LLP provides expert legal, policy, and regulatory advice and services to clients across the climate change and energy spectrum. We practice exclusively in the areas of climate change, clean energy, and related Indigenous rights. We have built a leading global climate and energy practice over two and a half decades based on strategic insights and a focus on enduring client relationships. Our mission is to facilitate the success and resilience of our clients in a changing climate. As a world-leading…

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Resilient Run/Walk on June 11, 2024

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Are you attending Carbon Forward North America in Toronto? Join Resilient LLP for an early morning run or walk on June 11, 2024 before the conference begins. Your Toronto Hosts: The Resilient LLP Team What: A fun and easy run (5-7km) or walk (3-4km) along the Toronto waterfront. Rain or shine! Where: Meet at 6:30am at Grange Park – Henry Moore’s Large Two Forms, right behind the AGO. After the run/walk, we’ll gather at Jimmy’s Coffee (166 McCaul St, at Elm). When: June 11, 2024, 6:30am (Conference registration starts at 8:30am, with the welcome address at 9:00am.) Apple  Google  Outlook RSVP: Let us know to expect you! (There is no obligation to RSVP in advance.) Please contact Lisa DeMarco (lisa@resilientllp.com) or Jonathan McGillivray (jonathan@resilientllp.com) with any questions or comments. We look forward to seeing you on June 11!

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