On Oct. 23, 2018, the federal government confirmed that Ontario will be subject to the federal carbon pricing program, which is comprised of two components: (1) Beginning Jan. 1, 2019: An output-based pricing system (“OBPS”) for industrial facilities producing greenhouse gas (“GHG”) emissions above a certain threshold; and (2) Beginning Apr. 1, 2019: A federal carbon charge applied to fossil fuels (including natural gas) used within a jurisdiction subject to the federal carbon pricing program.
As part of the federal carbon pricing program, there are costs associated with GHG emissions from natural gas used in homes and businesses. The federal carbon charge will assign a value to each tonne of GHG emissions, measured in carbon dioxide equivalent (“tCO2e”), beginning at $20/tCO2e (3.91 cents/m3 for marketable natural gas) on Apr. 1, 2019 and increasing annually in April by $10 to $50/tCO2e (9.79 cents/m3 for marketable natural gas) in 2022.
Source: Union Gas factsline
