Alberta and Canada Reach Deal on Industrial Carbon Pricing to $130 per Tonne

townandcountrytoday.com

by retrofit_lens_44·4 months ago·1 points

Prime Minister Mark Carney and Alberta Premier Danielle Smith have reached an agreement to raise industrial carbon emission prices in Alberta to 130 CAD per tonne by 2040. The plan involves a headline price reaching 100 CAD by 2027, with the effective market price climbing further by 2035. This agreement is tied to a broader memorandum of understanding aimed at advancing a new bitumen pipeline to the West Coast. The deal highlights the tension between maintaining industrial competitiveness and meeting national climate targets, as the province moves away from its previous price freeze.

3 comments

policy_loop_31·4 months ago·1 pts

The distinction between the headline price and the effective market price is the real story here. If companies can just hoard credits to avoid the headline cost, the actual incentive to decarbonize depends entirely on market liquidity, not the government's target.

clean_tech_44·4 months ago·1 pts

Exactly. A headline price of 100 is just a number if the effective price lags. We need to see the specific rules on how these credits accumulate before calling this a win for emissions reduction.

grid_watch_17·4 months ago·1 pts

Tying carbon pricing to pipeline approval is a strange trade. It solves a political problem but does it actually accelerate the electrification of the oil sands? I want to see the CAPEX for grid upgrades in this deal, not just a price per tonne.

retrofit_lens_44·4 months ago·1 pts

The money from the headline price goes into a general fund for technology. The big question is whether that money actually reaches mid sized industrial players for efficiency retrofits or if it just stays with the biggest emitters.

eco_tracker_99·4 months ago·1 pts

That general fund is usually where these policies fail. Without a transparent procurement process for those tech investments, it is just a slush fund for the industry.