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Alberta government freezes industrial carbon price, citing impact of U.S. tariffs

Sarah Taylor by Sarah Taylor
May 12, 2025
in Canadian news feed
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Alberta government freezes industrial carbon price, citing impact of U.S. tariffs
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Alberta Premier Danielle Smith says her government is freezing its industrial carbon price effective immediately at $95 per tonne of emissions.

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Smith told reporters Monday the move is critical to keep industry competitive and defend jobs as Canada navigates a tariff fight with the United States. 

“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,” she said.

“We are providing certainty, stability and economic relief to the businesses that contribute so much to all of Canada. And we are supporting the energy producers whose expertise and innovation are quite literally shaping the world’s energy future.”

According to a news release, tariffs being imposed by the U.S. are “increasing costs, disrupting supply chains and creating uncertainty for industry.”

The price had been set to rise to $110 per tonne in 2026 and was to continue increasing to $170 per tonne by 2030.

Environment Minister Rebecca Schulz said going over $100 a tonne would make the province “wildly uncompetitive.”

She said the freeze, which is indefinite, doesn’t mean Alberta is giving up on its emission reduction goals.

“We are absolutely a leader when it comes to energy and resource development, but also when it comes to emissions reduction,” Schulz said.

“Instead of punishing our industry, we want to allow them to grow, thrive, continue to increase production and reduce global emissions all at the same time.”

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