Canada and Alberta are deadlocked over the industrial carbon pricing framework known as TIER. While the federal government requires a strict price per tonne to incentivize emissions reductions, Alberta's implementation has faced criticism for undermining credit values and allowing companies to bypass payments through direct technology investments. This policy disagreement is currently stalling a major deal involving a new West Coast pipeline and carbon capture projects in the oilsands. The conflict centers on the difference between the headline carbon price and the actual effective price companies pay to pollute.
