The Canadian federal government has updated its industrial carbon pricing trajectory to match a new agreement with Alberta. This move avoids a legal battle over the federal backstop and aims to stabilize the market price of carbon credits, which had previously dropped as low as 17 dollars per tonne in the province. Under the new deal, Alberta's effective carbon price is targeted to reach 130 dollars per tonne by 2040. While some climate advocates argue the deal weakens national standards, others suggest it provides the regulatory certainty needed for long term industrial decarbonization investments.
