Federal, provincial, and territorial governments launch working group to boost cooperation on carbon markets across Canada

The Government of Canada is committed to fighting climate change while building the energy security, industrial capacity, and strategic autonomy that will define this century for Canada.

Climate action is a key part of how we build Canada strong. The Government of Canada is committed to fighting climate change while building the energy security, industrial capacity, and strategic autonomy that will define this century for Canada.

At this pivotal moment, Canada is building a stronger, cleaner economy by investing in clean electricity, reducing emissions, and supporting Canadian innovation. To achieve this, cooperation between federal, provincial, and territorial governments is more important than ever. As governments work together to build one strong Canadian economy and remove internal trade barriers, they are also considering how to improve the functioning of carbon markets across Canada to support investment in clean industrial growth.

In July 2026, First Ministers agreed to launch a new federal–provincial–territorial working group to explore different models of linking carbon markets across Canada. That working group—with representatives from each province and territory plus the Government of Canada—held its first meeting this week and discussed a draft workplan.

Well-functioning carbon markets can unlock significant new investments to support our shared energy and economic ambitions while reducing the emissions that are causing climate change.

Decarbonization is a nation-building project—one that brings Canadians, communities, and governments together around a shared opportunity to build a stronger, more competitive, and prosperous Canada. Climate and economic development are shared responsibilities in our federation, and we are focused on building and sustaining an approach that brings federal, provincial, and territorial governments together to advance these shared objectives.