Alberta and the federal government have reached a $1.2 billion agreement to restructure industrial carbon pricing. The deal involves raising industrial carbon taxes to $130 per tonne by 2040, with funding provided through carbon contracts for difference to help heavy emitters manage the transition. In exchange for the higher carbon price, the federal government will support a new West Coast oil pipeline and a $20 billion carbon capture and storage project. The cost of the carbon support mechanism is split evenly between the province and Ottawa.
