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Prime Minister Mark Carney is promoting enhancements to Canada's federal carbon pricing system, affecting major industrial, manufacturing, and electricity-generating facilities. The goal is to offset emissions reductions from the repeal of a carbon tax on gasoline, diesel, and natural gas.

Negotiations with Alberta, which produces about 25% of Canada's greenhouse gas emissions, are ongoing, targeting an agreement by April 1. The presence of diverse provincial carbon-pricing frameworks poses challenges to implementing uniform federal standards across Canada's ten provinces and three territories.