Carbon price 2026: federal schedule
The federal carbon price schedule by year, in effect under the May 2026 federal-Alberta agreement. Ontario industrial facilities subject to OBPS pricing use this rate.
The federal carbon price under the Greenhouse Gas Pollution Pricing Act is $95 per tonne of CO₂ equivalent in 2026 — held flat from 2025 under the May 15, 2026 federal-Alberta agreement. The schedule rises to $100/t for 2027 through 2029, $115/t by 2030, and reaches $130/t by 2035.
Common questions
What is the federal carbon price in 2026?
The federal carbon price for 2026 is $95 per tonne of CO₂ equivalent. This is held flat from the 2025 price under the May 15, 2026 federal-Alberta agreement, which superseded the previous schedule that would have raised the price to $110/t.
When does the carbon price reach $130?
The federal carbon price reaches $130/tCO₂e in 2035, after which a 1.5% annual escalator applies. By 2040 the price would be approximately $140/tCO₂e under that escalator.
Does Ontario use the federal carbon price?
Yes. Ontario does not have its own output-based pricing system for industrial facilities. Industrial emitters in Ontario are subject to the federal OBPS, which uses the federal carbon price schedule above. Ontario does have its own cap-and-trade for distribution (fuel suppliers), but industrial facility-level pricing is federal.
How does the carbon price apply to my facility?
Under OBPS, the carbon price only applies to emissions above your sector-specific performance standard. Emissions below the standard earn credits that can be banked or sold. Use the OBPS calculator to estimate your specific obligation.