Americas > Compliance Markets & Taxes > UPDATE – Canada softens industrial carbon price trajectory, caps benchmark at C$100 through 2029

UPDATE – Canada softens industrial carbon price trajectory, caps benchmark at C$100 through 2029

Published 18:45 on May 21, 2026 / Last updated at 00:46 on May 22, 2026 / / Americas (Compliance Markets & Taxes, US & Canada), Net Zero Transition (Industrial Decarbonisation)

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Canada’s federal government has announced a revised long-term industrial carbon pricing trajectory extending through 2040, with the headline carbon price rising from the current C$95/tonne to C$130 ($94.36) by 2035, before increasing annually by 1.5% until reaching C$140 in 2040.
Canada’s federal government has announced a revised long-term industrial carbon pricing trajectory extending through 2040, with the headline carbon price rising from the current C$95/tonne to C$130 ($94.36) by 2035, before increasing annually by 1.5% until reaching C$140 in 2040.


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