This policy is developed under the Greenhouse Gas Pollution Act of 2018 and is part of the federal carbon pollution pricing system. It is designed to put a price on the carbon pollution of industrial facilities that emit 50,000 tonnes of carbon dioxide equivalent (CO2e) or more per year, while minimizing international competitiveness and carbon leakage risks from exposure to the federal fuel charge. It also sets an emissions limit for each facility.
It was last ammended on July 2021 to address implementation issues