A letter coordinated by the Candian advocacy group Clean Prosperity was recently sent to all 10 provincial premiers. It urged provinces to collaborate to streamline the current "patchwork" of carbon markets, with the goal of creating larger, more efficient markets that offer companies greater flexibility. The letter was backed by 13 signatories, including major players from the steel, cement, chemical, and manufacturing sectors, including companies like Heidelberg Materials, Lafarge Canada, and Enhance Energy Inc.
The letter supports industrial carbon pricing, distinct from consumer-facing carbon pricing, and highlights the opportunity for heavy-emitting industries to trade credits earned from decarbonization projects such as carbon capture and storage. However, it points out that the current system, in which provinces operate separate markets, restricts companies’ ability to trade credits across jurisdictions. By working together, provinces could remove this barrier, making it easier to back large-scale emissions-reduction projects.
In a Globe and Mail article titled Provinces Face Private-Sector Call to Work Together on Industrial Carbon Pricing, written by climate reporter Adam Radwanski and published on October 24, 2024, experts emphasized the need for Canadian provinces to align their industrial carbon pricing systems.
While ClearBlue Markets was not a signatory to the recent industry letter urging provincial collaboration, CEO Michael Berends weighed in on the issue, noting that interprovincial market alignment would be especially beneficial for companies operating facilities in multiple provinces. He explained that many companies find themselves in situations where they have surplus credits in one province while falling short in another. A unified system could help these businesses manage their obligations more effectively, driving investments in clean technologies.Berends shared insights from international markets, drawing on his experience with multi-country carbon markets. He questioned why Canada couldn't adopt a similar approach, citing Europe's ability to coordinate despite internal challenges.