Greenhouse Gas Pollution Pricing Act - Canada federal fuel charge

The Pan-Canadian Approach to Pricing Carbon Pollution requires all Canadian provinces and territories to have a carbon pricing system in place that aligns with minimum national stringency standards. A federal carbon pricing backstop system comes into effect, in whole or in part in any province or territory that requests it or that does not have a price on carbon in place that meets the minimum standards. The federal backstop system consists of two components: a regulatory charge on fuels and a baseline-and-credit ETS for emissions-intensive and trade-exposed industrial facilities called the Output-Based Pricing System (OBPS). All direct proceeds from the federal system are returned to the province or territory of origin.

Source: World Bank Carbon Pricing Dashboard

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