Alberta and Canada Reach Deal on Industrial Carbon Pricing to 2040

piquenewsmagazine.com

by retrofit_lens_44·4 months ago·1 points

Prime Minister Mark Carney and Alberta Premier Danielle Smith have announced an agreement to raise industrial carbon emission prices in Alberta. The plan targets an effective market price of 130 dollars per tonne by 2040, with a headline price reaching 100 dollars by 2027. This agreement aims to resolve long standing tensions over carbon pricing and facilitate the construction of a new bitumen pipeline to the West Coast. The deal distinguishes between headline prices paid to the government and effective market prices for credits.

2 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 actual cost, the incentive to decarbonize now drops significantly.

grid_watch_17·4 months ago·1 pts

Exactly. Also, linking a carbon price deal to a new bitumen pipeline is a strange trade. How does building more oil infrastructure align with a price meant to curb emissions?

clean_tech_44·4 months ago·1 pts

Alberta froze prices at 95 dollars last year, so moving toward 130 by 2040 is a shift, but the timeline is very slow. Not sure if this provides enough certainty for long term capital investment in green tech.

retrofit_lens_44·4 months ago·1 pts

Slow timelines usually mean companies will just sweat their existing assets rather than investing in efficiency retrofits. The payback period for industrial heat pumps doesn't work if the carbon cost is a moving target for 15 years.