Large carbon emitters in Manitoba will have to pay $25 for every emitted tonne of carbon that exceeds yet-to-be-determined thresholds, under a proposed regulatory framework.

Large carbon emitters in this case mean industrial facilities that emit more than 50,000 tonnes of carbon dioxide equivalent per year. Six industrial facilities in Manitoba exceed that number: Koch Fertilizer Canada, TransCanada Pipelines, Graymont, Canadian Kraft Papers, Husky Oil, and Vale.

A discussion paper was released today. Under the proposed framework, facilities will also be credited for emitting less carbon than the established benchmarks, and those credits can be bought or sold.

The emissions benchmarks will decrease over time, to encourage companies to keep improving in greenhouse gas performance. The government is considering an annual two per cent drop, but Sustainable Development Minister Rochelle Squires indicated today that could change as the government consults with emitters.

“We’re going to be working with our emitters to ensure that they have a path forward for lowering their carbon footprint, and we will be setting a benchmark that will be reflective of our goals in Manitoba, which is to ultimately reduce the amount of carbon we put into the atmosphere,” said Squires.

Squires said the door is open for medium-sized emitters (those with annual emissions of 10,000 to 50,000 tonnes of carbon dioxide equivalent) to opt into the output-based pricing system by 2020.

The government is taking feedback until September 30th.