Canada and Alberta Agree on Industrial Carbon Pricing Target of $130 per Tonne by 2040

thedeepdive.ca

by grid_watch_17·5 months ago·1 points

The Canadian federal government and Alberta have reached a deal on industrial carbon pricing, setting a target of $130 per tonne by 2040. This agreement provides a more predictable price trajectory for heavy emitters, moving from $95 to $100 per tonne by 2027 before gradual increases. The deal aligns with Alberta's TIER system and supports large scale carbon capture, utilization, and storage projects like Pathways Plus. By establishing a clear long term price signal, the accord aims to provide the regulatory certainty needed for capital intensive decarbonization investments in the energy sector.

2 comments

policy_loop_31·5 months ago·1 pts

The jump from $95 to $100 is minor, but the real story is the slope. Moving to $130 by 2040 is a significant departure from the original $170 target. It is a classic policy trade off: trading aggressive climate targets for political stability and industry buy in.

grid_watch_17·5 months ago·1 pts

Predictability is great, but $130 in 2040 might be too low to drive the hardest abatement. I wonder if the Pathways Plus CCUS project can actually hit its targets with this pricing, or if it still relies heavily on direct subsidies to make the math work.

retrofit_lens_44·5 months ago·1 pts

If the price only goes up by $3 a year after 2030, the incentive to innovate on industrial heat or efficiency might stall. Companies will just pay the tax if the cost of the retrofit is higher than the projected carbon cost.

clean_tech_44·5 months ago·1 pts

Basically, Ottawa and Alberta stopped fighting long enough to set a price ceiling for 2040. It is a slower climb than the national plan, but it gives the energy sector a concrete number to put in their spreadsheets.