Carbon pricing 101: What today's increase could mean for you

The national price on pollution will rise by $15 per tonne today. Here's some questions answered about what this could mean for you.

The national price on pollution will rise by $15 per tonne today. Here's some questions answered about what this could mean for you.

Canada has two different carbon pricing programs — one for big industry where companies pay the price on a share of their actual emissions, and a consumer carbon levy which is applied to fossil fuel purchases. The consumer levy affects individuals, small and medium-sized businesses, First Nations, as well as public-sector operations such as hospitals, universities, schools and municipalities.

The price change on April 1 affects the consumer levy, which applies in every province and territory except British Columbia, Quebec and Northwest Territories.

B.C. and Northwest Territories both have their own, very similar carbon charge for consumers. Quebec has a cap-and-trade system that is quite different, but is considered equivalent by Ottawa to what the federal price both costs and cuts in terms of emissions.

The fuel charge is added to the price of more than 20 different fuel sources that produce greenhouse gas emissions when burned for energy, including gasoline, propane, diesel and natural gas. The additional cost to each fuel depends on how many greenhouse gases are produced when that fuel is burned to make energy.

A litre of diesel produces more carbon dioxide than a litre of gasoline, for example, so the carbon price is higher on a litre of diesel than it is on gasoline.

The impact will be similar in all provinces but Quebec.