Rebecca Schulz, Minister of Environment and Protected Areas. (Government of Alberta)

By The Canadian Press

ENVIRONMENT

Alberta changing industrial carbon tax program to recognize company investments

Sep 16, 2025 | 3:50 PM

The Alberta government is changing its industrial carbon tax program to let companies avoid paying provincial fees based on emissions by investing in their own emissions reduction projects instead.

Premier Danielle Smith says the move, likely to come into effect this fall, would support economic growth while ensuring companies work to lower emissions.

She says the province is also allowing smaller companies that don’t meet the emissions threshold to opt out of the carbon pricing system for 2025.

Alberta indefinitely froze its industrial carbon price at $95 per tonne of emissions in May.

Smith said at the time the move was a critical step in keeping industry competitive throughout Canada’s tariff fight with the United States.

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The price was set to increase to $110 per tonne next year, in line with the federal increase schedule.

This report by The Canadian Press was first published Sept. 16, 2025.