Canada and Alberta Negotiate New Industrial Carbon Pricing Deal

The Canadian government and Alberta are finalizing an industrial carbon pricing agreement that offers more lenient terms than the federal backstop. The proposed deal sets a headline price of 100 dollars per tonne by 2027, with an effective market price reaching 130 dollars by 2040. This agreement creates a gap between the official price and the actual market cost of credits, which recently traded as low as 17 dollars per tonne. Critics argue the extended timeline weakens climate action, while others suggest the impact depends on how the government handles the current surplus of emission credits.