Premier Danielle Smith announces that Alberta will freeze its industrial carbon tax. (Photo: Government of Alberta)

By David Opinko

Alberta cancels planned increase to industrial carbon tax

May 12, 2025 | 1:06 PM

The Government of Alberta says it is helping to keep industries competitive and defend jobs with its latest move.

The province has announced that it is freezing the industrial carbon tax, which is currently set at $95 per tonne of emissions.

It was scheduled to rise to $110 per tonne in 2026 and eventually reach $170 per tonne by 2030.

Premier Danielle Smith says the freeze will provide certainty, stability and economic relief at a time when tariffs imposed by the United States have increased costs, disrupted supply chains and created uncertainty.

“With the change in government south of the border, it [is] essential that we have a reasonable carbon pricing system, not one that will price our industries out of global markets. Alberta has had a reasonable, industry-led carbon-pricing system in place since 2007,” says Smith.

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She continues, “This is provincial jurisdiction, and we will not needlessly burden our businesses with further increases dictated by Ottawa that would be detrimental to our economy.”

Alberta has had its own industrial carbon tax, as part of the Technology Innovation and Emissions Reduction Regulation (TIER).

The TIER system sets an industrial price for CO2 emissions, and revenue generated from it goes towards geothermal, hydrogen, energy storage, methane emissions reduction, and carbon capture, utilization and storage technologies for industries across the province.

Rebecca Schulz, Minister of Environment and Protected Areas, says the province is defending the businesses that drive Alberta’s economy and protecting tens of thousands of jobs.

“Industry is at the heart of Alberta, and we will continue to keep our industry competitive and strong and will not allow it to be shut down or be put at risk of falling behind during this challenging time,” says Scccccchulz.

Alberta’s industrial carbon tax must be reviewed again by December 31, 2026.

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