Summary
Details
- Canada
Mandatory compliance with applicable obligations under the Act and its regulations (fuel charge and/or OBPS, depending on jurisdictional application and designation).
Criteria:
From April 1, 2025, the federal government set the fuel charge rates to $0 and removed federal requirements for provinces/territories to maintain a consumer-facing carbon price, while industrial carbon pricing continues.
Exceptions:
The Act functions as a backstop with application dependent on whether a province/territory has an equivalent system that meets federal standards, and which elements (fuel charge vs OBPS) apply in that jurisdiction.
Operational exceptions and detailed scope are largely defined through regulations under the Act (including OBPS Regulations and Fuel Charge Regulations).
Deep dive
📩 Stay ahead of climate regulation and reporting shifts
Regulatory updates, reporting standards, and new climate software — distilled into one concise weekly brief for decision-makers.
Thanks for signing up. Please check your inbox to confirm your subscription.
Practical updates. Once per week.
What’s Required
Covered entities must comply with the federal carbon pricing framework, which includes:
Fuel charge obligations (registration, returns, remittances, recordkeeping) for persons in scope under the fuel charge regime.
Industrial pricing obligations through the Output-Based Pricing System (OBPS) architecture for designated/covered industrial facilities (implemented via regulations under the Act).
Cooperation with enforcement powers, potential compliance orders, investigations, and record production requirements under the Act’s administration and enforcement provisions.
Important Deadlines
April 1, 2025: Federal fuel charge rate set to $0 and consumer carbon price backstop changed; industrial carbon pricing via Output-Based Pricing System continues.
Ongoing: Annual reporting & compliance cycles for industrial emitters under OBPS per regulatory schedules.
Current Status
In force and current (consolidated federal statute).
The Supreme Court of Canada upheld the constitutionality of the GGPPA in 2021 (References re GGPPA).
As of April 1, 2025, the fuel charge is effectively set to $0, while the OBPS remains in effect.
Penalties for Non-Compliance
The Act includes offences and punishments that can involve significant fines and, for certain offences, imprisonment, with fine ranges varying by offence type and whether the offender is an individual, organisation, or small revenue organisation.
Examples of Known Violations
A fuel distributor previously required to register and remit fuel charges must still follow any relevant administrative requirements, but the applicable fuel charge rate is $0 from April 1, 2025.
A large industrial facility covered under the federal system may remain subject to industrial carbon pricing requirements (via OBPS implementation), even after the consumer-facing fuel charge rate was set to $0.
Resources
Cut through the green tape
We don't push agendas. At Net Zero Compare, we cut through the hype and fear to deliver the straightforward facts you need for making informed decisions on green products and services. Whether motivated by compliance, customer demands, or a real passion for the environment, you’re welcome here. We provide reliable information. Why you seek it is not our concern.