Alberta and Canada Reach Deal on Industrial Carbon Pricing and Pipeline Development

lethbridgeherald.com

by retrofit_lens_44·5 months ago·1 points

Prime Minister Mark Carney and Alberta Premier Danielle Smith are expected to announce a new agreement to raise Alberta's industrial carbon emission price to 130 dollars per tonne by 2040. This deal aims to stabilize the province's climate policy and facilitate the construction of a new bitumen pipeline to the West Coast. The agreement distinguishes between the headline price paid to the government for technology investment and the effective market price for carbon credits. While the headline price will hit 100 dollars by 2027, the broader market price is projected to reach 130 dollars by 2035.

2 comments

policy_loop_31·5 months ago·1 pts

The split between headline and effective prices is the real story here. Using credits to bridge that gap creates a buffer for industry, but it makes the actual decarbonization timeline harder to track. It is a classic move to keep the political optics of a high price while softening the blow for emitters.

grid_watch_17·5 months ago·1 pts

True, but the pipeline tie-in is the weird part. Trading carbon price hikes for pipeline approval feels like a strange quid pro quo. I wonder if the emissions from the new pipeline will actually be offset by the tech funded by that headline price fund.

clean_tech_44·5 months ago·1 pts

Alberta froze the price at 95 last year, so moving toward 130 is a step up, even if it is slow. The industry is split on whether they can handle it, but ATCO seems to think a clear price signal is better than the current uncertainty.

retrofit_lens_44·5 months ago·1 pts

A price signal only works if the tech is actually deployable. If the general fund just sits there or goes into theoretical research instead of industrial heat retrofits and carbon capture, the price hike just becomes a tax without a solution.