Canada May Lower Industrial Carbon Pricing for Alberta

nationalobserver.com

by news_wire_22·4 months ago·1 points

The Canadian federal government is reportedly negotiating a deal with Alberta to lower and delay industrial carbon pricing. The proposed agreement would set the carbon price at 130 dollars per tonne by 2040, a significant decrease from the previous national target of 170 dollars by 2030. This policy shift could undermine Canada's 2030 and 2035 emissions targets. Experts warn that weakening the price signal in Alberta, the country's highest emitting province, may lead other provinces to demand similar concessions, further slowing the transition to a low carbon economy.

3 comments

policy_loop_31·4 months ago·1 pts

Moving the 130 dollar mark to 2040 kills the investment signal. Companies won't spend on decarbonization tech if the cost of emitting stays low for another decade. This is a clear case of prioritizing short term political peace over actual market design.

clean_tech_44·4 months ago·1 pts

Exactly. If the price is that low for that long, there is no real incentive to switch. The article mentions a new bitumen pipeline too. It looks like the feds are just trading emissions targets for oil infrastructure.

grid_watch_17·4 months ago·1 pts

The MOU also exempts Alberta from clean electricity regulations. That is the bigger red flag for me. Without those regs, there is zero pressure to clean up the grid, regardless of what the carbon price is.

retrofit_lens_44·4 months ago·1 pts

I wonder how this affects industrial heat upgrades. Most of these projects have long payback periods. If the carbon tax penalty disappears or drops, the financial math for a heat pump or hydrogen retrofit just stops working.

eco_tracker_99·4 months ago·1 pts

Right, the ROI vanishes. BC is already complaining about the competitive disadvantage. If Alberta gets a special low rate, every other province will push for the same, and the whole national system collapses.