Alberta’s Premier, Danielle Smith, has indicated a willingness to make adjustments to the province’s industrial carbon pricing program. This includes considering changes to Alberta’s industrial carbon price, which currently stands at $95 per tonne until 2026. This decision diverges from the federal government’s plan to raise the backstop price to $110 per tonne next year.
During a press briefing in Ottawa following a meeting with Prime Minister Mark Carney, Smith emphasized that Alberta’s carbon pricing strikes a balance between industry viability and promoting investments in green technology. She mentioned that the $95 per tonne carbon price is subject to discussion and highlighted the importance of maintaining carbon pricing at the provincial level, as it has been in place since 2007.
Federal officials have avoided confirming whether the federal backstop would be imposed on Alberta if its industrial carbon pricing program fails to meet federal regulations. Carney, who campaigned on strengthening industrial carbon pricing, is yet to take action against provinces like Saskatchewan, which eliminated its industrial carbon price earlier this year.
Alberta recently proposed changes to its industrial carbon pricing program, allowing companies to invest in emissions reduction projects to avoid provincial fees and enabling smaller firms to opt out of the carbon pricing system. While these changes were praised by industry stakeholders, concerns have been raised about their potential negative impact on clean growth investments.
Smith is in talks with Carney regarding the construction of a new pipeline from Alberta to the British Columbia coast. She has urged the federal government to lift the tanker ban, eliminate the electric vehicle sales mandate, remove the oil and gas emissions cap, and abolish the federal industrial carbon price to grant provinces regulatory autonomy.
In pursuit of a “grand bargain,” Smith envisions advancing the Pathways Alliance carbon-capture project alongside an oil pipeline to the West Coast. She aims to submit the pipeline project for consideration by Ottawa’s Major Projects Office by next spring, with hopes of finalizing a deal by the Grey Cup in November.
Overall, discussions between Smith and Carney are ongoing, focusing on finding common ground on carbon pricing and energy initiatives.