OBPS / CFS updates problematic for manufacturers’ competitiveness

OTTAWA (July 2, 2019) – Dennis Darby, President & CEO issued the following statement with regards to changes announced to the output-based pricing system (OBPS):

“Following the changes announced on Friday regarding the federal carbon pricing system for large emitters, CME welcomes the loosening of thresholds for trade-exposed high process emissions sectors such as steel and the expansion of sectors who can voluntarily opt-in into the OBPS. This is something that CME has called on the federal government to enact.

However, we remain concerned that the regulations could lead to double taxation between the federal and provincial systems. Duplicative regulations are unnecessary and, avoidable. They have a strong negative impact on manufacturer’s competitiveness making it more expensive and, more complicated to do business in Canada, while leading to the same policy outcome. We call on provincial and federal governments to work together maintain and enhance business competitiveness in Canada by harmonizing pricing systems and, finding solutions to re-invest the funds levied through taxation into the industry to encourage the adoption of new, more efficient technologies.”

Darby, also issued a statement with regards to regulatory update on Clean Fuel Standards release today:

“CME welcomes the government’s effort to provide more clarity on the credit generation aspect of CFS. Businesses need clarity and the lack of precision with regards to the regulations so far had been causing much uncertainty amongst trade exposed industries. The industry, however, remain concerned that economic or regulatory impact analysis have yet to be put forward. Manufacturers have identified gaps in the regulations that would be brought to light by an assessment. For example, fuel suppliers are telling us they are lacking the capital to be able to deliver renewable natural gas and other lower-carbon fuels to users within the timeline allocated to meet reduction target identified in CFS. We look forward to bring forward these issues and, work with decision-makers to develop sound regulations that achieve right balance between the government’s environmental and economic objectives.”


Since 1871, Canadian Manufacturers & Exporters has been helping manufacturers grow at home and, compete around the world. Our focus is to ensure manufacturers are recognized as engines for growth in the economy, with Canada acknowledged as both a global leader and innovator in advanced manufacturing and a global leader in exporting. CME is a member-driven association that directly represents more than 2,500 leading companies who account for an estimated 82 per cent of manufacturing output and 90 per cent of Canada’s exports. 


Stefi Proulx
Director of Communications
Canadian Manufacturers & Exporters
C:  613-292-6070 | stefi.proulx@cme-mec.ca | @CME_MEC