Internal emails show Texas-based VoltaGrid, the company behind a proposed natural gas plant for a data centre in Lorneville, New Brunswick, asked the province to guarantee a fixed carbon tax rate for 15 years. The province said it couldn't, because the federal standard could change. Weeks later, the federal government weakened the carbon pricing benchmark, and New Brunswick adopted it. The company then agreed to comply. The project's gas plant would emit over 750,000 tonnes of CO2 per year, making it one of the province's largest emitters. The province's environment department warned that the additional emissions would make it unlikely New Brunswick meets its 2030 greenhouse gas reduction target. The weakened carbon price also conflicts with the premier's earlier promise of a more robust system for industrial emitters. This case highlights the tension between attracting large energy projects and meeting climate commitments. It also raises questions about how provinces balance economic development with carbon pricing integrity.
