Current Status
Status: Not Started
No concrete actions by the Carney government have advanced the promised improvements to the Output-Based Pricing System or collaboration on carbon markets.
Background
Carbon pricing has long been a cornerstone of Canada's approach to reducing greenhouse gas emissions, with the federal Output-Based Pricing System targeting large industrial emitters to encourage cuts without undermining economic edges. During the 2025 federal election, Mark Carney positioned this promise as a way to balance environmental goals with industrial strength, especially amid U.S. trade tensions that could penalize high-emission exports. Fulfilling it would require specific reforms to the OBPS, such as adjusting allocation baselines or compliance mechanisms, alongside intergovernmental efforts to align provincial carbon trading systems for seamless national integration. Prior to Carney's tenure, the Trudeau government established the federal carbon pricing backstop in 2018, but those foundations offer context rather than progress toward Carney's commitments. The promise aimed to address criticisms that existing systems failed to fully shield industries from competitive disadvantages in global markets.
Evidence
Since Mark Carney was sworn in as Prime Minister following the 2025 election, his government has not taken verifiable steps to improve the Output-Based Pricing System for large industrial emitters. No legislation, regulatory changes, or policy implementations specific to OBPS reforms appear in available records as of March 25, 2026.
On November 27, 2025, the federal government signed a Memorandum of Understanding with Alberta, committing to collaborative efforts on net-zero emissions by 2050 and unlocking resource development, including oil, gas, renewables, and critical minerals [5]. This agreement emphasizes intergovernmental cooperation to lower global greenhouse gas emissions and position Canada as an energy superpower, but it does not reference carbon markets, OBPS adjustments, or barriers to market harmonization.
Natural Resources Canada's departmental plan for 2026-27 outlines priorities for natural resource science, risk mitigation, and sustainable development, including references to carbon management and net-zero goals [7]. However, this document focuses on future planning and does not detail executed actions toward the promise.
A federal carbon management strategy document discusses the role of carbon capture and storage in achieving net-zero emissions, highlighting the need for rapid deployment of technologies as per international assessments [1]. The strategy's publication date is not specified, and it lacks evidence of implementation tied to OBPS improvements or provincial carbon market linkages under the Carney administration.
Global Affairs Canada's 2024-25 departmental results report covers international engagements on climate and energy, but its timeframe predates Carney's government and does not reflect actions post-2025 [8]. Similarly, archived trade regulations from earlier eras, such as NAFTA and CCFTA rules of origin, provide historical context on trade competitiveness but show no updates relevant to carbon pricing under Carney [3][4].
No further actions by the Carney government, such as regulatory amendments or interprovincial agreements specifically addressing carbon market harmonization, have been documented as of March 25, 2026. A search of federal laws modified on March 18, 2026, yields no results tied to OBPS or carbon pricing reforms [2].
Assessment
The Carney government's record on this promise remains blank, with no tangible steps to reform the Output-Based Pricing System or foster nationwide carbon market integration. The November 2025 memorandum with Alberta signals intent for broader energy collaboration, but it stops short of addressing the core elements of the commitment, such as OBPS enhancements or reducing barriers to linking provincial systems. Without regulatory changes, legislative proposals, or multi-jurisdictional frameworks in place, Canadian industries lack the promised safeguards against emission reduction costs amid U.S. trade pressures.
This stasis leaves big emitters paying under existing federal rules without the competitiveness protections Carney outlined. As global markets evolve, the absence of action risks positioning Canada behind in low-carbon opportunities, underscoring a gap between campaign rhetoric and governance delivery. Until the government moves beyond planning documents to implement reforms, the promise sits unaddressed.
Sources
- Canada’s Carbon Management Strategy - Natural Resources Canada
- Search
- ARCHIVED - NAFTA Rules of Origin Regulations
- ARCHIVED - CCFTA Rules of Origin Regulations
- Canada-Alberta Memorandum of Understanding | Prime Minister of Canada
- G7 Leaders’ Communiqué | Prime Minister of Canada
- Natural Resources Canada's 2026-27 Departmental plan - Natural Resources Canada
- Global Affairs Canada: Departmental Results Report 2024-25 - Supplementary Information Tables