The province has released a discussion paper for a made-in-Manitoba output-based pricing system (OBPS) that will generate meaningful carbon reductions for emission-intensive industries while preserving local jobs, business investment and economic growth.

“The environment and economy go hand in hand. Our Made-in-Manitoba Climate and Green Plan set us on the path to make Manitoba the cleanest, greenest, most climate-resilient province in Canada,” Sustainable Development Minister Rochelle Squires said. “We are continuing along that path now by launching consultations on options for our regulatory framework and want to engage with affected stakeholders, companies and sectors.”

Alberta and Saskatchewan are establishing their own output-based pricing systems as well, while the federal government is working on a ‘backstop’, the minister said. Manitoba is developing its own system that will be reflective of the province’s unique emissions profile, and environmental and economic goals.

“The Made-in-Manitoba Climate and Green Plan will result in more emissions reductions with a lower carbon tax than the federal government’s plan,” said Squires.

The made-in-Manitoba output-based pricing system is anchored in the following design principles:

  • greenhouse-gas reductions,
  • reducing red tape,
  • harmonization,
  • predictability,
  • transparency, and
  • continuous improvement.

The pricing system will be phased in, with the first compliance period beginning in January 2019, the minister noted. Registered facilities will be required to meet specified emissions targets and be required to pay a carbon price of $25 per tonne or acquire offset credits for any exceedance, she added.

The OBPS will apply to industrial facilities with annual emissions of 50,000 tonnes or greater of carbon dioxide equivalent but will not apply to municipalities, universities, schools, hospitals, landfills, waste-water treatment facilities, or natural gas distribution networks, Squires noted.

The Manitoba government will continue to engage with industry and other stakeholders on the setting of emissions-intensity performance standards under the OBPS.

The regulatory framework for output-based pricing system is available online at www.manitobaclimategreenplan.ca.