Alberta defies federal carbon pricing and locks in lower rates

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Alberta has drawn a hard line against Ottawa’s latest carbon pricing scheme. Premier Danielle Smith announced that the province will freeze its industrial carbon price at $95 per tonne, rejecting the federal government’s planned increases. The move is a direct challenge to Prime Minister Mark Carney’s push for higher rates, which were set to rise to $110 per tonne in 2026 and $170 per tonne by 2030.

Smith made it clear that Alberta will not allow its industries to be priced out of global markets. The province’s energy sector, which contributes billions to Canada’s economy, faces mounting pressure from federal regulations. The government argues that raising carbon costs beyond $100 per tonne would cripple businesses, drive investment elsewhere, and weaken Alberta’s competitive edge.

Sources:

https://www.cbc.ca/news/canada/edmonton/alberta-government-freezes-industrial-carbon-price-citing-impact-of-u-s-tariffs-1.7532860

https://calgary.citynews.ca/2025/05/12/alberta-carbon-price/

https://deepnewz.com/canada/alberta-premier-smith-freezes-industrial-carbon-tax-95-per-tonne-to-protect-jobs-99ce0d60