Federal, provincial, and territorial governments launch working group to boost cooperation on carbon markets across Canada

OTTAWA, ON, Oct. 23, 2026 /CNW/ -- Climate action is a key part of how we build Canada strong. The Government of Canada is committed to fighting climate change while building the energy security, industrial capacity, and strategic autonomy that will define this century for Canada.

At this pivotal moment, Canada is building a stronger, cleaner economy by investing in clean electricity, reducing emissions, and supporting Canadian innovation. To achieve this, cooperation between federal, provincial, and territorial governments is more important than ever. As governments work together to build one strong Canadian economy and remove internal trade barriers, they are also considering how to improve the functioning of carbon markets across Canada to support investment in clean industrial growth.

In July 2026, First Ministers agreed to launch a new federal–provincial–territorial working group to explore different models of linking carbon markets across Canada. That working group--with representatives from each province and territory plus the Government of Canada--held its first meeting this week and discussed a draft workplan.

Well-functioning carbon markets can unlock significant new investments to support our shared energy and economic ambitions while reducing the emissions that are causing climate change.

Decarbonization is a nation-building project--one that brings Canadians, communities, and governments together around a shared opportunity to build a stronger, more competitive, and prosperous Canada. Climate and economic development are shared responsibilities in our federation, and we are focused on building and sustaining an approach that brings federal, provincial, and territorial governments together to advance these shared objectives.

Quotes

"This working group is an opportunity to consider how we can work together to better streamline and integrate the many distinct carbon markets operating in different provinces and territories across our country. Our goal is to improve the functioning of these carbon markets to provide long-term certainty for industry and investors while enabling our companies to remain competitive in the global marketplace."
– The Honourable Julie Dabrusin, Minister of the Environment, Climate Change and Nature

Quick facts

• Since 2019, a price on carbon pollution has applied across Canada through a mix of federal, provincial, and territorial pricing systems. This approach gives provinces and territories the flexibility to implement their own pricing systems.
• The federal–provincial–territorial working group is composed of representatives nominated by their respective governments.
• The working group will facilitate technical collaboration between federal, provincial, and territorial governments. It is expected to report back to the First Ministers by July 2027 with detailed recommendations.
• The working group is separate from broader engagement on carbon pricing related to the Greenhouse Gas Pollution Pricing Act and the review of the federal benchmark.
• In September, the Government of Canada announced it is exploring a policy framework to trade internationally transferred mitigation outcomes.

Associated links

• Industrial Carbon Pricing in Canada

Environment and Climate Change Canada's X page

Environment and Climate Change Canada's Facebook page

Environment and Natural Resources in Canada's Facebook page

Environment and Climate Change Canada's LinkedIn page

Environment and Climate Change Canada's Instagram page

SOURCE Environment and Climate Change Canada

Contacts: Amy Falkner, Press Secretary, Office of the Minister of the Environment, Climate Change and Nature, 873-355-9725, [email protected]; Media Relations, Environment and Climate Change Canada, 819-938-3338 or 1-844-836-7799 (toll-free), [email protected]