A study by the University of Waterloo suggests that Canada’s carbon pricing scheme is creating large financial risks, especially for the resource sector.
The study, titled Carbon Costs and Credit Risk in a Resource-Based Economy: Carbon Cost Impact on the Z-Score of Canadian TSX 260 Companies and recently published in the Journal of Management and Sustainability, warns of “grave uncertainty” facing the Canadian economy as federally mandated carbon levies ramp up to $170 per tonne by 2030. 
High-emitting industries such as mining and energy are at the greatest risk of default, placing total assets of $256 billion in jeopardy and exposing almost a quarter of Canada’s GDP. The study says carbon pricing and emissions must be included in credit risk procedures in analyses by financial lenders and regulators….