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d) There is a growing consensus that, if serious action is to be taken to reduce greenhouse gas (GHG) emissions in Canada, a price must be applied to those emissions.

c) There are, however, challenges associated with the political acceptability of carbon pricing.

a) If Canada implements a carbon price on its own, there are worries that Canadian factories will relocate to other countries to avoid the regulation.

b) Even if other countries act in concert with Canada to price carbon, the effects will be uneven across sectors, and lobbying efforts by relatively more-affected sectors might threaten the political viability of the policy.