British Columbia's Carbon Tax

B.C.’s carbon tax puts a price on carbon pollution, providing a signal across the economy to reduce emissions while encouraging sustainable economic activity and investment in low-carbon innovation.

In 2008, the province implemented North America’s first broad-based carbon tax.

The carbon tax applies to the purchase and use of fossil fuels and covers approximately 70% of provincial greenhouse gas emissions.

Carbon pricing is gaining momentum globally. In Canada, the federal government implemented a coordinated nation-wide carbon price, beginning at $20 per tonne of carbon dioxide equivalent emissions (tCO₂e) in 2019 and rising to $65 per tonne as of April 1, 2023. 

All provinces and territories must maintain a carbon price of at least $65 per tCO₂e in 2023. As of 2019, over 70 jurisdictions, representing about 20% of global GHG emissions, have put a price on carbon.

Approach to carbon pricing

On April 1, 2023, B.C.'s carbon tax rate rose from $50 to $65 per tCO₂e. To protect affordability, revenues generated by the new carbon tax increases will be directed to carbon tax relief for British Columbians through enhancements to the Climate Action Tax Credit.

Government also offers several carbon tax programs for businesses and local governments.

Industrial approach

Starting April 2024, the Province will switch to a new made-in-B.C. output-based pricing system (B.C. OBPS) for large industrial emitters, which prices emissions that exceed specific limits.

The B.C. OBPS will ensure emissions reductions for industry continue while providing flexible options, such as earned units and carbon offsets, to meet compliance obligations.

To align with the new B.C. OBPS, the CleanBC Program for Industry will undergo a transition throughout 2023:

• CleanBC Industrial Incentive Program (CIIP) will remain in place for a transition year (2023) with OBPS implementation starting in April 2024. Further details about the system and performance standards will be available later this year.
• CleanBC Industry Fund (CIF) which supports industrial emissions reductions projects, will remain in place and undergo its own transition in 2023 as it works to align with the new B.C. OBPS. A new CIF program is expected to launch in Spring 2024.

Please check back for further updates as they become available.

Tax rates by fuel

Different fuels generate different amounts of GHG emissions. The April 2023 carbon tax rate of $65 per tonne must be translated based on the type of fuel used. Below are rates for select fuels.