Canada expects to implement carbon pricing legislation in 2018 that would require each province to adopt a carbon tax or a cap-and-trade system to encourage industries to cut emissions.

The government announced two years ago that it would require all provinces and territories to implement carbon pricing, and has promised legislation and regulations as a “backstop” to ensure the requirement is met.

Environment and Climate Change Minister Catherine McKenna said the legislation will be introduced early in the year.

But some provinces and territories are taking a wait-and-see approach, while others are going their own way and developing policies...