Carbon Tax has started in Canada - are you prepared?

Ontario, Quebec, New Brunswick and Alberta are discussing new ways to tax carbon. If your business is not prepared, you could lose 50% of your profits! We have put together all the information you need to reduce the risk for your company.

Carbon Tax in Canada

Carbon tax around the world

For businesses

Output-based pricing system

Companies that emit more than 50 kilotons of CO2-equivalent per year (and any voluntary company) have to participate in an emission trading system, the Output-based pricing system (OBPS). Facilities with emissions above their standard must either pay a carbon price in line with the federal fuel charge, submit surplus credits purchased from facilities that performed better than their limit, or submit eligible offset credits.

For consumers

Federal backstop system

The Greenhouse Gas Pollution Pricing Act established a federal carbon pricing initiative. It gave provinces the opportunity to develop their own carbon pricing initiatives. The federal backstop system is a system with many components, which, in its essence, sets rates on fossil fuels that will increase to CAN$50/t CO2-eq by 2022. Through the Climate Action Incentive, payments of households can be claimed back when filing income taxes.

How much do I have to pay?

There are different approaches on how much to tax per ton of CO2-equivalent. However, there is usually a transitional period involved, in which you have to pay less in the initial years.

But there is one big risk

Right now, the amount of carbon tax you pay will be relatively moderate. But if you don’t start preparing now, carbon tax could cost you more than 50% of your profits.

We have created a free carbon tax calculator that allows you to calculate the tax you will have to pay for your specific business case.

Carbon Tax Calculator

Get ready for carbon tax in 5 steps. Download our quick guide now.

You are controlling your finances - are you controlling your emissions?

Environmental bookkeeping: Control your emissions, reduce efficiently, be ready for the future.

Carbon taxation is not the only threat coming your way. To stay profitable in the future, your business has to start preparing now. Our Environmental Intelligence Platform is an Environmental Management System that helps you to reduce your emissions efficiently, with easy-to-access statistics and tools.

Are you affected by the new Canadian Carbon Tax? Talk to our experts and start getting ready for 2022 today.

Get a free consultation

Our teams of Environmental Specialists and Business Consultants are experienced in both, Sustainability  and Business Management. Because they combine the best of both worlds, they can help you get prepared for carbon taxation and set your business up for the future.
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Our consultants will discuss your individual challenge. Need an LCA, EPD, or just want to benchmark your products? We can help you. Get in touch today.