The Canadian federal government has opted not to enforce its carbon price backstop in Alberta, choosing instead to cooperate with the province's industrial pricing system. This decision follows a new agreement to bring Alberta's effective carbon price to 130 dollars per tonne by 2040. To align with this deal, Ottawa has quietly updated its headline price trajectory for all industrial carbon pricing systems across Canada. While some climate advocates argue this weakens the national framework, the government maintains it provides the market certainty needed for long term industrial decarbonization.
