In 2019, in accordance with the Greenhouse Gas Pollution Pricing Act (GGPPA), the federal government implemented a carbon pricing program in Ontario. This Federal Carbon Pricing Program (FCPP) is comprised of two components:

  1. An output-based pricing system (OBPS) for industrial facilities producing greenhouse gas (GHG) emissions above a certain threshold; and
  2. A federal carbon charge applied to fossil fuels (including natural gas).

Effective Jan. 1, 2022, the OBPS will be replaced by Ontario’s Emissions Performance Standards (EPS) program. Similar to the OBPS, the EPS is a program for industrial facilities producing GHG emissions above a certain threshold.

The federal carbon charge assigns a value to each tonne of GHG emissions, measured in carbon dioxide equivalent (tCO2e). On April 1, 2021, the federal carbon charge for natural gas increased to 7.83 cents per cubic metre (m3). This charge increases annually each April.

2019 - 2022 Federal Carbon Charge Rates for Marketable Natural Gas
2019 – 2022 Federal Carbon Charge Rates for Marketable Natural Gas
Year $/tCO2e* cents/m3
2019 $20 3.91
2020 $30 5.87
2021 $40 7.83
2022 $50 9.79

*tonnes of carbon dioxide equivalent

Learn how to lower your carbon footprint, reduce your energy use and save money using our energy efficiency tips and solutions. Talk to your Enbridge Gas energy conservation advisor for more information.

The federal carbon charge is included on customers’ bills, with the exception of customer facilities that have an exemption certificate issued by the federal government. The federal carbon charge shows as a separate line item when applicable. Eligible participants under the GGPPA may be required or permitted to register with the federal government in order to receive full or partial exemption from the federal carbon charge.

The Government of Canada has introduced the Climate Action Incentive Fund (CAIF) for small-medium enterprises, municipalities, universities, schools, hospitals, and not-for-profit organizations. Eligible recipients may access funding for projects to decrease energy usage, save money, and reduce carbon pollution.


Output-Based Pricing System (OBPS)

On Jan. 1, 2019, the OBPS component of the FCPP came into effect in Ontario to address competitiveness risks for industrial facilities that are emissions intensive and trade exposed. An industrial facility may be required to participate or may voluntarily opt-in to the OBPS depending on the facility's total emissions. Industrial facilities in Ontario will transition out of the OBPS to the provincial EPS on Jan. 1, 2022.


Ontario Emissions Performance Standards Program

On Sept. 1, 2021, the federal government removed the application of the federal Output-Based Pricing System (OBPS) from Ontario, effective Jan. 1, 2022. Ontario’s Emissions Performance Standards (EPS) program, administered by the Ministry of Environment, Conservation and Parks (MECP), will replace the federal OBPS program on Jan 1, 2022. Similar to the federal OBPS, the EPS regulates greenhouse gas emissions from large industrial facilities by setting an emissions standard that the facility must meet each year. A facility that does not meet the standard will be responsible for paying to cover the portion of its emissions that exceed the standard.

As of Jan. 1, 2022, only facilities that are registered in the EPS program will remain eligible for exemption from the federal carbon charge.


Greenhouse operators

Greenhouse operators may be eligible to obtain 80 percent relief of the federal carbon charge, using an exemption certificate, when marketable natural gas used exclusively in the operation of certain commercial greenhouses is delivered by a registered distributor (e.g. Enbridge Gas).

To allow Enbridge Gas to process your exemption (such that only 20 percent of the federal carbon charge will apply), please complete the following steps: