Alberta Premier Danielle Smith has expressed willingness to make adjustments to Alberta’s industrial carbon pricing program, including the industrial carbon price set by the province. The decision to maintain the industrial carbon price at $95 per tonne till 2026 diverges from the federal government’s backstop price, slated to increase to $110 per tonne next year.
During a press briefing in Ottawa after meeting with Prime Minister Mark Carney, Smith highlighted that Alberta believes its current carbon price strikes a balance, supporting industry viability while fostering investments in eco-friendly technology. She mentioned that the $95 per tonne carbon price remains subject to discussion.
Smith emphasized the importance of maintaining the provincial carbon pricing approach, which has been in place since 2007 and has proven effective. However, uncertainties loom regarding whether Ottawa will enforce the federal backstop in Alberta if the industrial carbon price program fails to align with federal regulations.
Carney, who campaigned on reinforcing industrial carbon pricing, has yet to take action against Saskatchewan, which eliminated its industrial carbon price earlier this year. Smith referred to Carney’s readiness to repeal or modify ineffective policies, hinting at potential modifications to the carbon pricing system.
In a bid to boost industry engagement, Alberta proposed changes to its industrial carbon pricing program. These changes aim to incentivize companies to invest in emission reduction projects to offset provincial fees. However, concerns have been raised that these alterations could deter investments in clean growth.
Smith is engaged in discussions with Carney to facilitate the construction of a new pipeline from Alberta to the British Columbia coast. She has urged the federal government to lift the tanker ban off the B.C. coast and eliminate various environmental mandates to allow provinces more regulatory autonomy.
The premier is hopeful for a resolution, aiming to progress the pipeline project in time for the Grey Cup in November. Smith envisions a potential “grand bargain” involving the Pathways Alliance carbon-capture project alongside an oil pipeline to the West Coast, pending submission to Ottawa’s Major Projects Office by next spring.
Despite a lack of private sector backing or a defined route for the pipeline, Smith remains optimistic about reaching a deal by the upcoming Grey Cup event.