New Vision Paper Launch - Canada’s Carbon Market Opportunity: A Vision for Climate Competitiveness and Growth

Canada is at a pivotal moment in both climate policy and economic development. As global trade evolves and carbon performance increasingly influences market access, there is a growing opportunity to strengthen Canada's competitiveness through more connected and effective carbon markets.

In our new vision paper, Canada’s Carbon Market Opportunity: A Vision for Climate Competitiveness & Growth, IETA outlines a pathway to enhance domestic carbon market interoperability while positioning Canada to capitalise on emerging international carbon market and low-carbon trade opportunities.

The paper recommends a two-track strategy:

• Build the foundations for a more connected pan-Canadian carbon market through greater interoperability, fungibility and linkage where beneficial.
• Leverage that stronger domestic platform to unlock international opportunities through Article 6 cooperation, carbon accounting leadership, low-carbon product markets and strategic carbon market partnerships. 

By improving coordination among domestic markets and strengthening connections to international carbon market developments, Canada can reduce compliance costs, enhance investment certainty, attract capital, and support the growth of globally competitive low-carbon industries. 

The vision paper highlights how carbon markets can contribute to economic growth, trade diversification, industrial competitiveness and emissions reductions, helping Canada meet both climate and economic objectives.

Read the paper here.