July 21, 2021
Carbon Tax Rate (Cdn$/t CO2)
Carbon Tax Natural Gas Equivalent (Cdn$/MMBtu)
The Canadian Federal government has mandated a carbon price under the Greenhouse Gas Pollution Pricing Act. The federal program acts as a backstop price which applies to Provinces whose carbon policy or emissions regulations do not meet federal benchmarks.
- Natural gas produces 53 Kg (117 lbs) of CO2 emissions per MMBtu or 0.053 tonnes per MMBtu
- $40/t CO2 equates to a cost of $2.12/MMBtu of natural gas use
- $170/t CO2 equates to a cost of $9.02/MMBtu of natural gas use
- AECO-NIT has averaged Cdn$2.90/MMBtu over the first 5 months of 2021