What Is Canadian Carbon Competitiveness?

Jan 27, 2026

Marcus Rocque, Vice President of Research at the ARC Energy Research Institute, is a policy analyst focused on carbon pricing, methane rules, and energy competitiveness. He discusses Canadian federal carbon policy and industrial pricing. Short talks cover recent methane regulations, the Canada–Alberta MOU and pipeline plans, carbon market reforms, and what carbon competitiveness means for investment and infrastructure.

Ask episode

AI Snips

Chapters

Transcript

Episode notes

INSIGHT

Defining Carbon Competitiveness

Carbon competitiveness means ensuring Canadian carbon policy doesn't make projects uncompetitive versus other jurisdictions.
If policy raises project costs too much, investment will shift abroad and Canada will lose infrastructure and jobs.

INSIGHT

Price Over Emissions In Discussion Paper

ECCC's discussion paper prioritizes keeping carbon prices high over explicitly emphasizing emissions reductions.
The paper focuses on price-control mechanisms rather than addressing market fragmentation or emissions outcomes.

ADVICE

Respond To ECCC Consultation Quickly

Do ask for clarity and submit feedback to ECCC's discussion paper by the deadline to influence policy direction.
Highlight concerns about unpredictable stringency adjustments and the burden they impose on industry.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

This week on the podcast, Jackie and Peter are joined by Marcus Rocque, Vice President of Research at the ARC Energy Research Institute. This episode focuses on Canadian federal carbon policy, including a discussion of the carbon pricing policy for large industrial emitters and the recently finalized methane regulations, which target a 75% reduction by 2030 (relative to 2012). The discussion centers on how these policies affect competitiveness, investment, and infrastructure development in Canada's natural gas and oil sector.

They start by discussing Prime Minister Carney’s recent speech at Davos. Next, they review recent developments in Canadian carbon policy, including the Canada–Alberta Memorandum of Understanding (MOU) signed on November 27, 2025, in which both governments agreed to work toward an oil pipeline to reach Asian markets. The MOU also outlines a plan to develop a revised industrial carbon pricing policy and methane regulations by April 1, 2026. Not long after the MOU was signed, in December 2025, Environment and Climate Change Canada (ECCC), a federal agency, issued final methane regulations that conflict with the MOU, with one requiring an end date of 2030 and the other 2035. Further to this, ECCC released a discussion paper in December titled “Driving Effective Carbon Markets in Canada”, asking for feedback by January 30, 2026, on potential changes to Canada’s carbon markets, which are also being modified as part of the Canada-Alberta MOU by April 1.

Jackie, Peter, and Marcus discuss what “carbon competitiveness” means and how Canadians should think about it in a changing global energy landscape. They also share concerns about the carbon market discussion paper and new methane regulations.

Content referenced on this podcast:

Discussion Paper: Driving Effective Carbon Markets in Canada. Send your feedback to ECCC before January 30, 2026, by emailing: tarificationducarbone-carbonpricing@ec.gc.ca
Final Methane Regulations: Canada Gazette, Part II, Volume 159, Number 27

Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/

Check us out on social media:

X (Twitter): @arcenergyinst
LinkedIn: @ARC Energy Research Institute

Subscribe to ARC Energy Ideas Podcast
Apple Podcasts
Amazon Music
Spotify