The federal and Alberta governments are close to reaching a deal on industrial carbon pricing, a key policy meant to reduce greenhouse gas emissions. Under the proposed agreement, Alberta’s effective carbon price would rise to $130 per tonne by 2040.
The carbon pricing system mainly affects large industries like oil and gas, steel, and cement. Companies that lower emissions can earn credits and sell them to other businesses. Right now, those credits trade at about $45 per tonne in Alberta, much lower than the official price of $95 per tonne.
Industry groups say a clear carbon pricing plan will help attract investment in energy and carbon capture projects. The agreement could also help move forward major projects, including a proposed pipeline to the Pacific coast, new power lines, and a large carbon capture system.
Some critics say the timeline is too slow and may not be enough for Canada to meet its climate goals by 2050. British Columbia Premier David Eby also raised concerns that Alberta may be receiving special treatment compared to other provinces.
Prime Minister Mark Carney and Alberta Premier Danielle Smith are expected to announce the deal soon if final issues are resolved.
