Alberta and Canada Agree on Industrial Carbon Price Floor and Investment Guarantees

Alberta and the federal government have reached a deal to raise the effective carbon price for industrial emitters to 130 dollars per tonne by 2040. The plan addresses a surplus of cheap credits that previously allowed companies to avoid expensive emissions reductions. To provide investment certainty, the agreement introduces carbon contracts for difference. These act as insurance for green projects, with both governments sharing a 1.2 billion dollar liability to cover price gaps if carbon policies are repealed or changed.