Alberta Net Zero Costs: The Fiscal Impact of the Carney-Smith Deal

westernstandard.news

by news_wire_22·4 months ago·1 points

A detailed analysis of Alberta's path to net zero by 2050, examining the gap between a proposed $130 per tonne carbon tax and the actual capital requirements for emissions reduction. The piece highlights the massive investment needed for carbon capture and direct air capture to meet provincial targets. The report estimates that reaching these goals could require up to $380 billion in upfront capital, potentially leaving Alberta taxpayers to cover a significant portion of the risk through tax credits and loans.

2 comments

policy_loop_31·4 months ago·1 pts

The gap between a $130 tax and the actual cost of DAC is the real story here. If the market price for carbon doesn't cover the cost of removal, the whole strategy relies on subsidies. It is a massive fiscal risk.

grid_watch_17·4 months ago·1 pts

Beyond the tax, where is the power coming from to run these DAC plants? They are energy intensive. If the grid cannot handle the load, the $380 billion investment is just a paper exercise.

retrofit_lens_44·4 months ago·1 pts

Always the same with these giant projects. They talk about the capture capacity but ignore the operational maintenance and the actual energy penalty of running the equipment.

clean_tech_44·4 months ago·1 pts

Basically, the author argues that the current carbon tax plan is too low to drive the necessary investment, meaning the government will have to fill the hole with taxpayer money. Heavy focus on the cost of CCS and DAC.