Canada Proposes Amendments to the Output-Based Pricing System Regulations

In October 2022, Environment and Climate Change Canada (ECCC) published proposed amendments to the Output-Based Pricing System Regulations (OBPSR). The proposed amendments are consistent with those published in December 2021, including a new standard for composite panel plants (particleboard, fiberboard and hardboard) and a 2% annual tightening rate applicable to all standards.

CPA provided comments regarding the quantification of production to calculate a facility’s emissions intensity. Primarily, recommending the language related to the production of panels be changed from “will not undergo any additional transformation” to “prior to undergoing additional transformation” will help to ensure all panels are included in the production volume, regardless of what happens downstream (e.g., secondary processing, downgraded and sold, used as fuel, landfilled, repurposed).

The standard goes into effect in federal backstop jurisdictions on January 1, 2024. While no CPA members currently operate in a backstop jurisdiction, the federal government will be reevaluating the equivalency of provincial carbon pricing systems in 2026, after which the new standard could apply. See OBPSR Proposed Amendments. More Info: Kevin Warkentin

Scroll to Top