The Canadian federal government and Alberta have signed a new agreement on industrial carbon pricing. Environment Minister Julie Dabrusin stated that Ottawa avoided enforcing the federal backstop to maintain co-operation with the province. While Prime Minister Mark Carney claims the deal strengthens the existing system, some climate activists argue the new terms are weaker than previous policies. This move reflects a shift in how federal climate goals are balanced with provincial autonomy.
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The phrase co-operative federalism is usually code for watering down a standard to avoid a lawsuit. If the deal is weaker than the previous backstop, it is a policy regression, regardless of how much the two leaders like each other.
Exactly. The article mentions activists say it is weaker, but it does not say by how much. We need the actual price floor and leakage protections to know if this actually moves the needle or just looks good in a press release.
Industrial pricing is one thing, but without a clear signal on long term costs, companies just keep delaying the capital spend for electrification. Does this agreement include a predictable price trajectory for the next decade?
Interesting shift under Carney. He is moving away from the Trudeau era approach of legal battles and trying to negotiate directly with the provinces. The real test is whether the emissions targets are still being met.
