A key cornerstone of the Pan-Canadian Framework on Clean Growth and Climate Change is a price on carbon in all Canadian provinces and territories. In this note we assess Manitoba’s current plan and find it fails to meet the requirements under the PCF in its current form.
However, with some important adjustments, namely the addition of a binding cap on emissions enforced by a permit system to ensure the plan reaches the projected emissions reduction, and an affirmation of the previous target, the plan could be in compliance with the cap and trade requirements for the federal carbon price test.
These important adjustments are also well-within reach, as Manitoba is still designing its carbon pricing system. This solution would allow Manitoba to use an approach that works for them, while meeting the federal standard.
