Alberta and the federal government have reached a deal to raise industrial carbon taxes to 130 per tonne by 2040. To support this, the parties will use carbon contracts for difference to guarantee a floor price for carbon credits, potentially costing Alberta taxpayers up to 600 million dollars. The agreement links these climate policies to the construction of a 20 billion dollar carbon capture project and a new oil pipeline to the West Coast. However, lower stringency rates in the TIER system may increase the likelihood of government payouts to emitters.
