The Alberta government has frozen its industrial carbon price at $95 per tonne to shield businesses from uncertainty caused by recent U.S. tariffs and maintain competitiveness for provincial industries.
The decision, announced Tuesday, aims to provide stability for sectors including oil and gas, electricity, petrochemicals and manufacturing that employ tens of thousands of workers across the province.
“This freeze will provide certainty, stability and economic relief to the businesses that contribute so much to all of Canada,” said Premier Danielle Smith. “With the change in government south of the border, it essential that we have a reasonable carbon pricing system, not one that will price our industries out of global markets.”
The move comes as industry leaders express concerns about operating efficiently amid rising costs and supply chain disruptions stemming from American tariffs. Alberta’s industrial carbon pricing system, known as TIER, was previously scheduled to increase to $110 per tonne in 2026 and eventually reach $170 per tonne by 2030.
Provincial officials described the freeze as necessary to defend Alberta’s economy and jobs.
“By freezing the TIER price, we are defending the businesses that drive our economy and the jobs that tens of thousands of families rely on against tariffs, threats and uncertainty,” said Rebecca Schulz, minister of environment and protected areas.
The government cited a decade of federal policies they claim have decreased Alberta’s competitiveness and driven away investment since 2015.
Provincial autonomy
The province emphasized its longstanding industrial carbon pricing system, which has been in place since 2007.
“Alberta has had a reasonable, industry-led carbon-pricing system in place since 2007. 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,” said Smith.
Energy and Minerals Minister Brian Jean said the decision strikes a balance between industry needs and environmental goals.
“This freeze balances industry’s need for predictability and stability and acknowledges that Alberta competitiveness will be irreparably harmed by an industrial carbon price that goes too high and would hurt our efforts to produce the cleanest energy in the world,” said Jean.
Focus on technology
The province maintains it remains committed to reducing emissions through new technologies rather than through “unrealistically high taxes.” Officials noted the oil sands have reduced emissions intensity by over 22 per cent while production increased by 90 per cent.
The TIER system, which taxes carbon dioxide equivalent emissions from regulated facilities, will undergo its next legislated review by Dec. 31, 2026. The program funds various clean technology initiatives including geothermal, hydrogen, energy storage and carbon capture projects across Alberta.
