On October 3, 2016 Prime Minister Trudeau announced that the provinces had until 2018 to adopt a carbon pricing scheme, or the federal government would create one for them.  Each province had complete latitude to create the plan in its own best interests, so long as certain minimum thresholds were met. All revenue generated under the carbon pricing scheme would remain within the province.

Provincial reaction to the announcement varied: Alberta, British Columbia and Quebec already have carbon pricing regimes in place, and are generally fine with the federal mandate.  They have indicated that their economies have suffered no ill-effects under carbon pricing.