Alberta and Canada Reach Deal to Raise Industrial Carbon Price to $130 per Tonne by 2040

cbc.ca

by eco_tracker_99·4 months ago·1 points

Prime Minister Mark Carney and Alberta Premier Danielle Smith have reached an agreement to increase the province's industrial carbon emission price. The plan targets an effective market price of $130 per tonne by 2040, with the headline price hitting $100 per tonne by 2027. This pricing agreement is part of a broader memorandum of understanding aimed at facilitating the construction of a new bitumen pipeline to the West Coast. The deal balances federal climate targets with provincial economic interests and industrial competitiveness.

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 bank credits to avoid the headline cost, the actual incentive to decarbonize now stays low. We need to see the specific rules on credit accumulation.

grid_watch_17·4 months ago·1 pts

Agreed. Also, linking carbon pricing to pipeline approval feels like a strange trade. Does a higher carbon price actually lower the risk for the pipeline, or is this just political cover to get the project moving?

clean_tech_44·4 months ago·1 pts

Alberta froze the price at 95 last year, so moving toward 130 by 2040 is a slow climb. It gives industry a predictable path, but it might be too slow to drive the deep retrofits needed for heavy emitters.

retrofit_lens_44·4 months ago·1 pts

Exactly. Most industrial heat upgrades have long payback periods. If the price only creeps up slowly, the financial math for switching to electric boilers or heat pumps doesn't change enough to trigger immediate investment.