The Canadian federal government has opted not to enforce its carbon price backstop in Alberta, choosing instead to cooperate with the province on a new industrial pricing agreement. This deal sets a path for Alberta's effective carbon price to reach 130 USD per tonne by 2040, with a headline price hitting 100 USD per tonne by 2027. This agreement has led the federal government to update its headline price trajectory for all industrial carbon pricing systems across Canada to match the Alberta schedule. While some policy experts view this as a pragmatic way to ensure long-term investment certainty, climate advocates argue the move weakens the national framework for emissions reduction.
