(Nova Scotia) Output-Based Pricing System

The Ouput-Based Pricing System (OBPS), established through amendments to Nova Scotia's Environment Act, replaces the cap-and-trade system for carbon pricing for Nova Scotia's power and industry sectors.
 
The system applies to electricity generators and large industrial emitters with facilities that emit 50,000 tCO2e or more greenhouse gasses per year, including carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulphur hexafluoride and nitrogen trifluoride. Under OBPS, facilities face a compliance obligation to emit less than the emissions standards established in the regulation, or submit performance credits for emissions that exceed that limit. Performance credits are tradeable and follow the federal government’s backstop carbon price, which is CAD 65 in 2023, and will increase by CAD 15  annually until it reaches CAD 170 per tonne in 2030.

In contrast to the cap-and-trade system, OBPS allows facility emissions to increase as production increases, but also tightens overall emission standards over time. 

Want to know more about this policy ? Learn more