08/27/2026
"As the U.S. continues to escalate its trade war, removing unnecessary interprovincial trade barriers has never been more urgent," Clean Prosperity's Brendan Frank writes in a new analysis.
A new First Ministers' working group is exploring interprovincial carbon credit trading to tear down domestic trade barriers and improve carbon market liquidity.
To better understand the implications of linking, we modelled three provincial markets: British Columbia, Alberta, and Ontario. Linking the three provinces' carbon markets creates price convergence and drives about seven million cross-border credit trades per year.
"By unlocking cross-border credit trading, Canada can lower industrial compliance costs while achieving 84% more cumulative emissions abatement," Frank wrote.
"Connecting provincial carbon markets lets us tear down internal trade barriers and deliver cheaper, faster emissions reductions for industry."
🔗 Link to Brendan's analysis below.