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By Jack Farrell, The Canadian Press

Energy

Alberta to maintain industrial carbon price freeze for 2026, leaving Ottawa to act

Sep 17, 2025 | 2:52 PM

The Alberta government says it will maintain a frozen industrial carbon tax price for 2026, putting the province at odds with federal rules.

Premier Danielle Smith announced the freeze in May, saying Alberta’s price would stay at $95 per tonne of emissions for an indefinite period of time.

Alberta was set to increase the price to $110 per tonne starting next year in line with the federal schedule but now says it’s keeping the freeze in place for 2026.

Canada’s industrial carbon tax program permits provinces to implement their own program as long as the provincial policy keeps up with prices set by Ottawa.

The federal backstop rate is supposed to be implemented if provinces fall behind, but it remains to be seen if Prime Minister Mark Carney would enforce the higher price.

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Environmental groups have called on Carney to enforce the federal rate on Alberta come next year, but the province says it’s working with Ottawa to resolve concerns on a number of energy policies.

The province says by maintaining the lower price, it’s giving the energy industry economic stability and relief.

This report by The Canadian Press was first published Sept. 17, 2025.