Carbon Pricing and Competitiveness Pressures in Nova Scotia

Figure 1d: Carbon Pricing Competitiveness Pressures by Sector in Nova Scotia

Higlights in Nova Scotia

  • Nova Scotia’s small size has interesting implications for its exposure to competitiveness pressures from carbon pricing. A large share of the goods it produces—coal, gold, cement, natural gas, pulp and paper, and other resources—are exported in competitive markets, leading to a very high measure of trade exposure.
  • At the same time, vulnerable “sectors” are often single facilities. For example, Nova Scotia has a single cement facility and two pulp and paper plants. These are the individual emitters in the province likely to be most exposed to competitiveness pressures.
  • About 10% of the provincial economy is based on other manufacturing that has low emissions intensity and carbon costs, although considerable trade exposure.
  • Future developments in the province—such as additional natural gas projects and LNG plants—would likely also be both emissions intensive and trade exposed.