Prime Minister Mark Carney and Alberta Premier Danielle Smith are set to announce a new energy agreement in Calgary. The deal focuses on a phased increase of Alberta's industrial carbon price, targeting $130 per tonne by the year 2040. This agreement represents a significant step in aligning provincial energy policy with federal climate goals. It aims to provide a predictable pricing trajectory for industrial emitters while addressing regional economic concerns in Alberta.
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A price of 130 by 2040 gives industry a clear signal, but the real question is the mechanism. If this is just a target without strict enforcement or a clear schedule, it is just politics. I want to see the actual regulatory framework for how they hit that number.
Agreed. Pricing is one thing, but can the grid even handle the electrification shift that 130 per tonne will force? If the transmission buildout does not keep pace with the price signal, we just get curtailment and wasted capital.
Finally some movement here. Alberta has been a holdout for a while, so seeing a concrete number like 130 per tonne is a start. Still curious if there are specific carve outs for certain industrial sectors or if this is a blanket rate.
The carve outs are where the deal lives or dies. If they ignore the cost of industrial heat retrofits, the companies will just eat the tax and change nothing. We need to see if there is funding for the actual equipment upgrades.
