Alberta government freezes industrial carbon price, citing impact of U.S. tariffs
Alberta Premier Danielle Smith announced a significant change in the province’s carbon pricing system, freezing the industrial carbon price at $95 per tonne of emissions effective immediately. This decision comes amidst a tariff dispute with the United States, with Smith emphasizing the need to maintain industry competitiveness and protect jobs in Canada.
In a press conference on Monday, Smith highlighted the importance of having a reasonable carbon pricing system that does not hinder the ability of Alberta’s industries to compete in global markets. The move to freeze the carbon price is aimed at providing certainty, stability, and economic relief to businesses that are vital to Canada’s economy, particularly the energy producers who are driving innovation in the energy sector.
The decision to freeze the carbon price comes in response to the tariffs imposed by the U.S., which have been causing increased costs, supply chain disruptions, and uncertainty for industry. The carbon price was originally slated to increase to $110 per tonne in 2026 and continue rising to $170 per tonne by 2030. However, Environment Minister Rebecca Schulz expressed concerns that surpassing $100 per tonne would make the province “wildly uncompetitive.”
Schulz emphasized that the indefinite freeze on the carbon price does not mean Alberta is abandoning its emission reduction goals. Instead, the government aims to support industry growth, production increase, and emissions reduction simultaneously. Alberta prides itself on being a leader in energy and resource development, as well as emissions reduction efforts.
The decision to freeze the industrial carbon price reflects the government’s commitment to striking a balance between environmental protection and economic prosperity. By supporting industry growth and innovation, Alberta aims to reduce global emissions while ensuring the continued success of its businesses. This move is expected to have a positive impact on the province’s economy and contribute to its long-term sustainability goals.
