The government's of Canada and Manitoba have announced that Manitoba will join the Pan-Canadian Framework on Clean Growth and Climate Change.

Manitoba’s plan includes a carbon tax of $25 per tonne for each of the next five years.

The federal government will assess each province and territory’s carbon pricing plan annually against a federal standard that starts at $10 per tonne this year and rises to $50 per tonne in 2022.

“Manitobans believe in doing their part to help combat climate change," said Rochelle Squires, Manitoba Minister of Sustainable Development. "This is why we released our Made-in-Manitoba Climate and Green Plan based on our province’s realities and unique climate profile, including a carbon price of $25 per tonne. Adopting the Pan-Canadian Framework will ensure Manitoba receives its equitable allocation of federal funds to help reduce emissions and adapt to climate change. It does not require Manitoba to adopt or agree to the federal carbon price schedule.”

Manitoba’s decision to sign on to the deal means the province is eligible to receive an allocation of up to $67 million in funding under the Low Carbon Economy Leadership Fund.

The carbon levy will not be applied to marked fuels used by farmers for their farming operations.  Agricultural operations will also be able to contribute to carbon sequestration and offset trading systems to be established in Manitoba and other provinces.