Alberta and the federal government have reached an agreement to raise industrial carbon taxes to $130 per tonne by 2040. To support this transition and maintain industry competitiveness, the two governments will use carbon contracts for difference (CCFDs) to guarantee a floor price for carbon credits. This financial arrangement could cost Alberta taxpayers up to $600 million. The deal aims to stabilize the TIER carbon market, where credit values have historically fallen well below the actual tax rate, while facilitating a new $20 billion carbon capture and storage project.
