After hearing concerns from industry officials about how a carbon tax would impact competitiveness, the Trudeau government is relaxing guidelines that lower the percentage of emissions some polluters will have to pay tax on.

(Dan Riedlhuber/Reuters)

Last January, Ottawa set the benchmark at 70% of an industry’s average emissions performance – meaning companies would pay a tax on emissions produced in excess of the benchmark.

The government now says cement, iron, lime and nitrogen fertilizer producers will have the threshold raised to 90% with other industries’ being eased to 80%.

The Liberals say they’re still talking to industries and will have more details this fall.

The plan, scheduled to take effect early next year, will be imposed on provinces that don’t have their own carbon pricing system.

Ontario’s eliminated its cap-and-trade scheme and is joining Saskatchewan in a court case challenging Ottawa’s carbon tax plan.