A new Fraser Institute study by economist Jack Mintz finds that the federal Alberta MOU on industrial carbon pricing will add $3.8 billion per year to oilsands production costs by 2040. The carbon tax climbs to $140 per tonne, adding $3 per barrel and making Alberta crude less competitive against US producers. The study also warns of $1 billion in added electricity costs annually, hitting households and the data centers the province is trying to attract. The MOU was meant to balance federal climate goals with Alberta's oil economy, but Mintz argues it creates a high cost jurisdiction. The Pathways carbon capture project, a key part of the deal, faces its own cost questions. For anyone tracking carbon pricing, industrial competitiveness, or the real cost of decarbonization in Canada, this study is worth reading.
