Canada eyes boosting fines for industrial emissions

By Anne C. Mulkern | 02/10/2026 06:12 AM EST

Prime Minister Mark Carney is turning to factories and power plants to cut emissions, after scrapping a consumer carbon tax last year.

Canadian Prime Minister Mark Carney speaks during the Progress Global Action Summit in London.

Canadian Prime Minister Mark Carney is pushing to strengthen the country's carbon pricing system. Kin Cheung/AP

Major Canadian factories and power plants could soon pay more for their planet-warming emissions.

Prime Minister Mark Carney is pushing to strengthen a federal policy that forces many industrial, manufacturing and electricity-generating facilities to reduce their carbon intensity. The aim is, in part, to make up the emissions reductions lost when Carney ended a carbon tax on gasoline, diesel and natural gas consumption.

Carney’s administration is already negotiating potential rule changes with oil-rich Alberta, a province responsible for about a quarter of the country’s greenhouse gas emissions. The two aim to agree on changes by April 1.

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But with many provinces using their own carbon-pricing system, changing the federal standards could be politically difficult, experts said. Canada’s 10 provinces and three territories regulate several hundred factories and power plants.

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