Alberta energy deal fails to cut Canada's emissions, Canadian Climate Institute report finds

A new report from the Canadian Climate Institute concludes that the energy memorandum of understanding between Ottawa and Alberta will do little to reduce Canada's emissions. The analysis finds that relaxed stringency rates in Alberta's industrial carbon pricing system will lead to an oversupply of low-cost credits after 2030, undermining the incentive for companies to invest in actual emissions cuts. The report warns that the system may deliver paper compliance rather than real reductions. The deal sets a headline carbon price of $130 per tonne by 2040, but the effective market price has already dropped to between $30 and $35 per tonne since the full details were announced. The study's author, Dave Sawyer, says the floor price alone does not guarantee emissions reductions. The report also notes that the minimal benefits from the MOU are not enough to offset the prospect of increased oil production.