Recycling EU ETS carbon revenues for further emissions reductions

On his first day in office, Prime Minister Mark Carney announced the elimination of the consumer carbon tax, in response to political pressures rather than evidence-based concerns about its effectiveness or impact on affordability. The tax had played a crucial role in reducing the country’s GHG emissions, and along with other carbon pricing policies, was expected to contribute nearly half of Canada’s emissions reductions by 2030. Additionally, the majority of revenues collected were redistributed to citizens, protecting vulnerable households. Thus, without alternative policies to compensate, eliminating the tax could slow emissions reductions and increase inflationary pressure, particularly for low- and middle-income families who benefited financially from the Canada Carbon Rebate funded by the tax. 

Frequently asked questions on the development and implementation of carbon pricing policies. This work aims to provide a carefully curated companion tool for jurisdictions considering or developing a carbon pricing instrument, with questions and answers (Q&A) focused on opportunities they can bring, specific challenges and policy choices pertaining to the design and implementation of carbon taxation and emission trading systems in emerging markets and developing economies (EMDES).

The COP29 in Baku was supposed to breathe new life into North-South climate cooperation through the negotiation of the new NCQG financing target. Instead, confrontational negotiations produced a half-hearted agreement, and the onerous task of charting a path to bridge the resource gap before the next COP.