Mr. Speaker, the Government of Canada is proposing pan-Canadian pricing for carbon pollution, which would be implemented across the country by 2018. Under the proposed pan-Canadian approach, provinces and territories will have the flexibility to choose between two systems: a direct price on carbon pollution or a cap and trade system. Currently, British Columbia, Alberta, Ontario, and Quebec, representing over 80 per cent of the population, have already implemented or introduced legislation to implement carbon pricing. The government will introduce a backstop pricing system that will apply in jurisdictions that do not meet a national carbon pricing benchmark. That federal backstop system is currently under development, and details on its application will be announced at a future date.
With respect to the impacts of carbon pricing on other federal and provincial revenue sources, the extent to which these revenues may be impacted will depend on the approaches taken individually by provinces and territories in implementing a carbon price that meets the proposed pan-Canadian benchmark for carbon pricing.