With costs escalating due to U.S. tariffs, the Government of Alberta has made the decision to freeze the industrial carbon price.
A release on May 12 notes that the industrial carbon price is currently $95 per tonne of emissions and the pause was put in place in "response to feedback from industry leaders."
"This freeze will provide certainty, stability and economic relief to the businesses that contribute so much to all of Canada," said Premier Danielle Smith.
"With the change in government south of the border, it is essential that we have a reasonable carbon pricing system, not one that will price our industries out of global markets. 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.”
The release notes that the tariffs imposed by the U.S. are increasing costs and supply chains, creating uncertainty across multiple industries, and taking away Alberta businesses' ability to remain efficient and competitive.
The freeze will provide relief for certain sectors, including oil and gas, electricity, petrochemical, manufacturing, cement, pulp and paper, mining, forestry and others.
“By freezing the TIER price, we are defending the businesses that drive our economy and the jobs that tens of thousands of families rely on against tariffs, threats and uncertainty," said Rebecca Schulz, Minister of Environment and Protected Areas. "Industry is at the heart of Alberta, and we will continue to keep our industry competitive and strong and will not allow it to be shut down or be put at risk of falling behind during this challenging time.”
The province also noted that the imposed tariffs follow a decade of policies by Canada's federal government, which were anti-industry and anti-development, and have reduced Alberta's competitiveness.
“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," said Brian Jean, Minister of Energy and Minerals.
Alberta's price on carbon emissions (TIER) system has been in place since 2007. The province has reduced emission intensity by 22 per cent while increasing output by 90 per cent.
Under the previous schedule, the price per ton was to increase to $110 in 2026 and $170 by 2030.
