Alberta and Canada Agree to Raise Effective Industrial Carbon Price to $130

Alberta and the Canadian federal government have reached an agreement to fix the province's industrial carbon pricing system. The plan addresses a surplus of carbon credits that has historically driven the effective cost of emissions far below the official headline price, removing the incentive for companies to actually reduce pollution. To ensure industry emitters face a real cost, the governments will gradually increase the headline price and implement a floor price for carbon credits. The goal is to reach an effective carbon price of $130 per tonne by 2040, providing a more predictable financial signal for decarbonization investments.