OTTAWA — The pace at which Alberta agrees to increase its industrial carbon tax and the rules governing the system emerged Thursday as a key issue in negotiations between Prime Minister Mark Carney's government and the province, sources familiar with the talks said.
The federal government is pushing for Alberta to align its industrial carbon pricing system with the federal benchmark, which requires a minimum price of $50 per tonne in 2026, rising to $170 per tonne by 2030. Alberta currently has a carbon tax of $30 per tonne for large emitters, and the province has resisted rapid increases, citing economic concerns for its energy sector.
“We are committed to a made-in-Alberta solution, but we cannot accept a one-size-fits-all approach that would harm our economy,” said Alberta Environment Minister Rebecca Schulz in a statement. The federal government has not publicly commented on the negotiations, but officials have indicated that a deal is possible if Alberta agrees to a phased-in increase.
The outcome of these talks could set a precedent for other provinces, as the federal government seeks to ensure all jurisdictions meet the minimum carbon pricing standards under the Pan-Canadian Framework on Clean Growth and Climate Change. Alberta's system covers about 60% of the province's emissions, primarily from oil sands and industrial facilities.
