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

Abstract

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.

We provide an updated estimate based on a broad carbon levy and extend our analysis to incorporate additional carbon pricing using an Output-Based Pricing System (OBPS), taking into consideration alternative structures. Estimates of the corresponding impacts on the Canadian economy are also provided.