Alberta and the Canadian federal government have reached an agreement to stabilize the provincial industrial carbon market. The plan introduces a floor price for carbon credits to prevent the effective price from dropping too low, targeting an effective price of 130 dollars per tonne by 2040. To encourage long term investment in decarbonization, the deal includes carbon contracts for difference. These contracts protect developers against policy reversals, ensuring a guaranteed price for emissions reductions even if carbon pricing regimes are repealed.
