Canada’s carbon pricing, approaching its fifth anniversary, has sparked intense debate and political strife, especially around the Conservative’s anti-carbon tax campaign.
Amidst the public discourse surrounding the cost of living and inflation, Prime Minister Justin Trudeau made adjustments to his climate policy. He excluded heating oil from carbon pricing for three years after mounting pressure from the East Coast and Atlantic caucus.
This change triggered immediate responses from various provinces and sectors. Saskatchewan’s Premier Scott Moe announced plans to halt collecting the carbon price for the federal government.
Likewise, the Northwest Territories sought full exemption from carbon pricing for their communities. On the other hand, First Nations in Ontario raised concerns about exclusion from the carbon price rebate program due to tax filing limitations on reserves.
The Impact of a Carbon Tax
Study shows a carbon tax results in a reduction in emissions, with some cases revealing more success than others.
The current carbon pricing in Canada includes consumer fuel charges with accompanying rebates to offset expenses and encourage emission reduction. But Canada’s carbon tax is a patchwork. Not all provinces adhered to it wherein some were resistant and others already had their policies in place.
More notably, a case study revealed that British Columbia’s carbon tax has reduced emissions by between 5% and 15%. Implemented over 15 years ago, BC’s carbon tax was the first in North America.
British Columbia’s carbon tax started at $10/tonne of CO2 emissions and increased by $5 a year until it hit $50 in 2021. The carbon pricing covered about 70% of the province’s GHG emissions.
However, small businesses bear the brunt of the costs without receiving rebates, which could lead to international repercussions and affect Canada’s export competitiveness.
The ongoing debate over carbon pricing has made it challenging to predict policy consistency, which impacts businesses’ climate plans.
Regardless of political decisions, businesses are committed to their climate goals, adapting strategies to remain competitive while prioritizing profitability. Saskatchewan responded differently to the case.
Provincial Responses and Policy Clash
The Saskatchewan government announced that its natural gas utility will stop charging the carbon levy from residential customers beginning Monday. This decision follows Trudeau’s exemption of home heating oil users from paying the levy, primarily benefiting residents in Atlantic Canada.
Saskatchewan requested a similar exemption for all other heating methods, but Ottawa declined. In response, the province declared it would cease collecting the charge at the beginning of 2024.
Dustin Duncan, responsible for SaskEnergy, highlighted that the levy is due to be paid by the end of February. Failure to remit this amount could result in federal penalties for SaskEnergy executives, as per federal law. To protect these executives, Saskatchewan passed legislation shifting the responsibility to the province.
Duncan mentioned SaskEnergy’s request for the federal government to unregister it as a natural gas distributor, preferring the province to hold this designation instead. The company awaits clarity on whether it will acknowledge this change before deciding in January about remittance.
Saskatchewan’s Strategy: Adaptation and Investment
While Saskatchewan is discontinuing the carbon levy for electricity heating users, they don’t anticipate legal issues due to their control over the levy concerning SaskPower. SaskPower will channel the funds that would have been collected as levies into an investment fund. This move is expected to cost the company over $3 million this year.
Saskatchewan intends to use the funds generated from carbon tax for emissions-free electricity projects, including the potential implementation of a small modular nuclear reactor.
Additionally, levies from other high-emission industries will be directed to a separate technology fund for projects aimed at reducing, capturing, and sequestering emissions.
Despite losing its challenge against the carbon tax’s constitutionality in 2021, Saskatchewan continues to navigate its implementation. The goal is to seek exemptions and alternatives within federal carbon pricing regulations.
At the end of last year, Canada introduced two major moves to cut GHG emissions. One is to cap oil and gas emissions at 38% by 2030 based on 2019 levels.
The other one is to curb methane emissions from cattle burps. This initiative encourages changes in cattle diets, feed efficiency improvements, and strategies that lower methane release.
Canada’s carbon pricing policy has ignited a fierce debate, triggering varied responses from provinces and sectors. While adjustments have been made to exclude certain fuels from the levy, concerns linger over the impact on small businesses and indigenous communities. The ongoing discourse will continue into 2024, affecting policy predictability, and challenging businesses to adapt while maintaining climate goals.
The post Saskatchewan to End Carbon Tax on Natural Gas & Electric Heating appeared first on Carbon Credits.
Carbon Footprint
The Strategic Case for Nature-Based Carbon Investments
Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.
1. Define the sourcing problem before choosing a project
Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.
This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.
CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.
2. Develop nature-based carbon investments around the actual supply chain
The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?
Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.
Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.
The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.
3. Compare the proposal with other ways to protect supply
WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.
The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.
The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.
The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.
4. Establish what the carbon outcome could count toward
Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?
Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.
SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.
For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.
Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.
5. Build a financial case that survives weaker assumptions
Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.
Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.
Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.
A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.
6. Fund a pilot with a clear expansion decision
Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.
Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.
Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.
This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.
Discuss a sourcing opportunity with CCC
Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.
Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.
Sources
- Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
- World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
- Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
- United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
Carbon Footprint
How to buy plastic credits, and what to check before you do
A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.
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Carbon Footprint
EU carbon credit claims after 27 September 2026
EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.
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