Originally published March 27, 2025 at The Narwhal. Read the full story here.
The Alberta government is considering killing its industrial carbon tax, according to an industry association email obtained by The Narwhal.
The email, sent by the Canadian Renewable Energy Association on Wednesday night, said staff met with senior government officials on March 25 and were told Alberta is considering three options for the future of its provincial price on carbon, including removing it altogether.
The meeting, which multiple sources told The Narwhal was part of a broader stakeholder consultation, took place shortly after federal Conservative Leader Pierre Poilievre changed direction and promised to eliminate industrial carbon pricing at a national level.
The association said in the email it was invited to the meeting without any details, was not allowed to keep copies of slides presented at the meeting and was told there would be no further consultation on the future of what’s called the Technology Innovation and Emissions Reduction regulation (commonly referred to as TIER) — the province’s current industrial carbon pricing plan that was introduced in 2020.
Essentially, the province sets a price on carbon emissions and companies can either pay that price into a fund, reduce their emissions or trade emissions credits to comply.
The money collected from the price on carbon is used to fund emissions reduction technologies across the province.
According to the email, the three options the government is presenting for a new system are:
- Keep the system largely as is, but include a new way to comply with the regulation by allowing companies to invest directly in emissions reductions technology (such as carbon capture and storage) at their own facilities. The renewable energy association notes this would not necessarily involve overall emissions reductions
- Scrap the current system and compel companies to invest in emissions reductions technologies. Again, the association notes this would not necessarily be tied to an overall reduction in emissions
- Allow companies to opt into staying with the current system, or opt into compulsory investments in on-site emissions reduction technologies, with the same warning that this will not necessarily reduce emissions
Spokespeople for the premier, the minister of environment and protected areas and the minister of affordability and utilities did not respond to emailed questions and requests for interviews by publication time. The Narwhal is not disclosing how it obtained the email in order to protect a source.
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