The Alberta government has made a move to freeze the industrial carbon price in response to the U.S. tariffs.
The province announced on Monday that it would freeze the current rate of $95 per tonne of emissions in hopes of providing relief to a range of economic sectors in Alberta, including oil and gas, forestry, and mining.
“This freeze will provide certainty, stability and economic relief to the businesses that contribute so much to all of Canada," Premier Danielle Smith said. "With the change in government south of the border, it's essential that we have a reasonable carbon pricing system, not one that will price our industries out of global markets."
In a press release the government stated the current tariffs being imposed by the U.S. only add to the decade-long anti-development and anti-industry policies of the Canadian federal government, and in return are increasing costs and disrupting the supply chain. This shift is making it hard for Alberta to remain competitive in the marketplace and has driven away investment opportunities.
“This freeze balances industry’s need for predictability and stability and acknowledges that Alberta competitiveness will be irreparably harmed by an industrial carbon price that goes too high and would hurt our efforts to produce the cleanest energy in the world.” Brian Jean, Minister of Energy and Minerals, said.
"Alberta has had a reasonable, industry-led carbon-pricing system in place since 2007. This is provincial jurisdiction, and we will not needlessly burden our businesses with further increases dictated by Ottawa that would be detrimental to our economy," Smith claimed.
Alberta's industrial carbon tax system, known as TIER, has been in place since 2007 and was previously scheduled to rise to $110 per tonne in 2026, and $170 per tonne by 2030.
