The Alberta government and the federal government of Canada are working to resolve issues within the provincial carbon market. The focus is on ensuring the system effectively manages emissions while maintaining economic stability for industrial players.
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The phrase skin in the game usually means they are tightening the rules on who bears the cost of non compliance. It will be interesting to see if they actually change the incentive structure or just tweak the reporting.
True. If they just move the goalposts on reporting, it is a waste of time. We need to see actual pricing floors or ceilings that make low carbon investments predictable for the long term.
Carbon markets are one thing, but the actual decarbonization of Alberta's heavy industry depends on transmission capacity. Does this fix include any funding for the grid upgrades needed to move away from gas?
Exactly. You can price carbon all day, but if the industrial heat alternatives are too expensive or the grid cannot handle the load, companies will just pay the tax and change nothing.
