Federal, provincial and territorial representatives have begun technical work on how Canada’s separate carbon markets could connect.

Environment and Climate Change Canada said in an October 23 release that the working group held its first meeting this week and discussed a draft workplan. First ministers agreed to establish it in July.

The group includes representatives nominated by each province and territory and the federal government. It is expected to provide detailed recommendations to first ministers by July 2027.

Options remain under study

The announcement concerns possible models for linking markets. It does not announce a completed national trading system, an agreed model or immediate changes to existing provincial rules.

Environment Minister Julie Dabrusin said the aim is greater certainty for industrial businesses and investors. Those are the government’s objectives, not demonstrated outcomes of the new group.

The department says this process is separate from broader carbon-pricing engagement and the federal benchmark review.

Source: Environment and Climate Change Canada, October 23, 2026.

Editorial illustration of industrial carbon-market cooperation.