The Government of Canada announces plan with Nova Scotia to price carbon pollution and negotiate coal phase-out agreement

Working together to take action on climate change will give Canada an edge in building a clean-growth economy.

HALIFAX, Nov. 21, 2016 /CNW/ - Today, the Honourable Catherine McKenna, Minister of Environment and Climate Change, announced that the Governments of Canada and Nova Scotia have agreed on an approach to price carbon pollution, and they have committed to working together to negotiate a new equivalency agreement on the accelerated coal phase-out that was announced earlier today in Ottawa.

Nova Scotia will implement a cap-and-trade system that aligns with Canada's pan-Canadian approach, announced earlier this year, to pricing carbon pollution. Nova Scotia will also adopt a province-wide target that meets or exceeds Canada's target of reducing emissions by 30 percent, from 2005 levels, by 2030.

The Government of Canada has also announced plans to accelerate the phase-out of traditional coal-fired electricity units. ‎This plan will involve accelerating the timelines in the existing regulation under the Canadian Environmental Protection Act, 1999 (CEPA). Nova Scotia is expressing interest in entering into an updated equivalency agreement with the Government of Canada under section 10 of CEPA, for these new requirements. This initiative builds on the leadership Nova Scotia has demonstrated in the transition from coal-fired electricity to renewable power.

The federal government is working closely with provinces and territories, and Indigenous peoples, to finalize the plan at the First Ministers' Meeting, in December, to meet or exceed our climate-change target, grow the economy, and build resilience to a changing climate. Together, we will create the clean-growth economy necessary for the collective health, prosperity, and security for this generation of Canadians—and the next.


"We are extremely pleased that the province of Nova Scotia intends to implement a cap-and-trade system as its approach to pricing carbon pollution. Their proposed approach ensures that Nova Scotia will remain a leader in contributing to Canada's clean-growth economy.

"We will be working on an updated equivalency agreement on the accelerated coal phase-out in order to recognize Nova Scotia's strong action on reducing GHG emissions.

"Today's announcement demonstrates our commitment to a collaborative, productive approach to clean growth and climate change, and we will continue working with all provinces and territories to build the low-carbon economy of the future."

– Catherine McKenna, Minister of Environment and Climate Change

Quick facts

  • Under Canada's plan, each province and territory has the flexibility to choose an approach: they can put a direct price on carbon pollution or they can adopt a cap-and-trade system.
  • A common and broad set of greenhouse gas emission sources will be covered in all provinces and territories.
  • An equivalency agreement already exists between the Government of Canada and Nova Scotia, which recognizes that Nova Scotia's Environment Act and its Greenhouse Gas Emissions Regulations are equivalent to the current CEPA regulations relating to coal-fired electricity generation. A new equivalency agreement will be developed building on this agreement.

Associated link

Government of Canada Announces Pan-Canadian Pricing on Carbon Pollution

Environment and Climate Change Canada's Twitter page

Environment and Natural Resources in Canada's Facebook page


SOURCE Environment and Climate Change Canada

For further information: Caitlin Workman, Press Secretary, Office of the Minister of Environment and Climate Change, 819-938-9436; Media Relations, Environment and Climate Change Canada, 819-938-3338 or 1-844-836-7799 (toll free)


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