Alberta places 'indefinite freeze' on industrial carbon tax
Alberta is indefinitely freezing the industrial carbon tax at $95 per tonne for heavy emitters.
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Premier Danielle Smith said the decision comes in the wake of the ongoing tariff threats by U.S. President Donald Trump and after industry feedback indicating that further increases would be 'detrimental' to businesses and market competitiveness.
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'Alberta remains committed to reducing emissions through the development and implementation of new technologies, not unrealistically high taxes, while responsibly powering the world for decades to come,' Smith said at a Monday press conference.
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The carbon price was set to increase to $110 per tonne in 2026 under the Alberta Technology Innovation and Emissions Reduction (TIER) program and continue to increase to $170 per tonne by 2030 — which the province had agreed to with Ottawa in late 2022 to comply with federal standards.
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According to Smith, any additional increases above $100 per tonne will 'wipe out any benefits' the province has seen so far. She said Ottawa's decision to increase the carbon tax to $170 per tonne by 2030 would be 'devastating' to the Alberta economy.
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'This is yet another example of Ottawa overstepping,' Smith said.
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Parliament is set to resume at the end of May after being prorogued in January. Prime Minister Mark Carney and his cabinet are set to be sworn in on Tuesday.
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Alberta's industrial carbon tax system has been in place since 2007. Under the program, industry pays into a central TIER fund when emissions exceed specified limits. The fund is used to support various technologies and initiatives aimed at reducing greenhouse gas emissions.
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Environment and Protected Areas Minister Rebecca Schulz said revenue in the TIER fund has fluctuated and did not voice concerns on how various initiatives will be funded if the annual $15 increase on industrial carbon price is stagnant.
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'This year we've been able to even increase some of our investments. I think some of that fluctuation is normal. Again, the most important piece has to be economic competitiveness for our industry,' Schulz said.
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