Canada and Alberta are negotiating a carbon pricing agreement that could raise costs for industrial emitters to C$130 per metric ton. This is a steep increase from current levels and is intended to make large scale emissions reduction projects more financially viable. The price hike is closely tied to the C$16.5 billion Pathways carbon capture and storage initiative. Federal approval for new oil pipelines may depend on the progress of this carbon capture framework and the province's commitment to higher pollution pricing.
