Alberta gov’t backs industrial carbon tax: report

An April 8 letter by Environment Minister Rebecca Schulz to Carbon Assessors, a Calgary-based data firm, vowed to keep the industrial carbon tax.

 

An industry association email obtained by The Narwhal indicates the Alberta government is considering eliminating its industrial carbon tax—that appears to contradict a letter penned by its environment minister.

The Canadian Renewable Energy Association (CREA) reported that government officials stated Alberta is considering removing its provincial carbon price following a March 25 meeting.

The meeting took place shortly after Conservative leader Pierre Poilievre promised to eliminate the industrial carbon tax at the federal level. Premier Scott Moe endorsed the promise, while Danielle Smith opposed further tax hikes.

A 2022 Order-in-Council issued by the Alberta government backed the Liberal tax pricing schedule. It outlined sweeping changes to the province's TIER program, which remain in place until 2030 and are subject to an interim review by the end of 2026.

The CREA, invited to a meeting about the Technology Innovation and Emissions Reduction (TIER) regulation—the province’s industrial carbon pricing plan from 2020—received no details beforehand, was barred from keeping presentation materials, and was informed of no further consultation on its future.

The province has an industrial carbon tax where companies can pay, reduce emissions, or trade credits. The collected funds support emissions reduction technologies provincially, while maintaining their competitiveness.

TIER-regulated facilities include those that emitted 100,000 tonnes or more of carbon dioxide equivalent (tonnes CO2) per year in 2016 or any subsequent year.

An email details government proposals for a new industrial carbon tax system, including maintaining the current tax, eliminating it, or allowing companies to choose to participate, with those opting out required to invest in on-site emissions reduction technology.

The CREA also met with Utilities Minister Nathan Neudorf, who expressed the ministry's awareness and concern regarding potential changes to the TIER regulation given other shifts in the electricity sector.

Meanwhile, the Canadian Taxpayers Federation (CTF) urged Premier Smith to scrap Alberta’s provincial industrial carbon tax.

“Smith has done the right thing by fighting Ottawa’s cap on Alberta energy and speaking out against the federal carbon tax and now she needs to scrap Alberta’s industrial carbon tax too,” said Kris Sims, CTF Alberta Director. “Smith should follow Saskatchewan’s lead and make Alberta a carbon tax-free zone.”

On April 1, the federal government officially dropped the consumer carbon tax to zero. However, the federal government still requires provinces to impose a hidden industrial carbon tax.

The Taxpayers Federation voiced firm opposition to Alberta’s hidden industrial carbon tax on businesses in the province.

Seventy per cent of Canadians said businesses pass most or some industrial carbon tax costs on to consumers, according to a recent Leger poll commissioned by the CTF.

“Smith has been a strong fighter against carbon taxes and now she needs to entirely eliminate it here at home,” Sims said. “The Saskatchewan government deserves credit for scrapping its industrial carbon tax and becoming the first carbon tax-free province.”

An April 8 letter by Environment Minister Rebecca Schulz to Carbon Assessors, a Calgary-based data firm, vowed to keep the industrial carbon tax, reported Carbon Pulse

“The Government of Alberta remains committed to a strong and competitive industrial carbon pricing system that balances economic growth and emissions reduction,” reads the letter, as seen by Carbon Pulse.

Schulz writes that her government is looking to evaluate and enhance the province's Technology Innovation and Emissions Reduction (TIER) design to support industry and drive innovation, as part of an upcoming regulatory review of the program.

Former environment minister Sonya Savage applauded the industrial emitters carbon tax as the "right thing to do for businesses." 

A survey by Carbon Assessors showed 80% of respondents back TIER for lowering emissions, and another 83% expect TIER to continue attracting investment.

Alberta's large industrial emitters pay a carbon tax of $95 per tonne, rising to $170 in 2030. This increase was implemented to comply with federal minimum requirements.

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Alex Dhaliwal

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Alex Dhaliwal is a Political Science graduate from the University of Calgary. He has actively written on relevant Canadian issues with several prominent interviews under his belt.

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COMMENTS

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  • Bruce Atchison
    commented 2025-05-02 19:20:59 -0400
    How STUPID! Industrial carbon taxes are harmful and will drive away business. Carbon dioxide is a life-giving gas and not a pollutant. We need more of that gas in our atmosphere, not less. I wish Danielle Smith would realize how counterproductive any sort of carbon tax is.
  • Bernhard Jatzeck
    commented 2025-05-01 20:47:36 -0400
    Going along with the carbon extortion, er—tax, is like playing nice with a pond full of crocodiles, in the hope of being eaten last.
  • Bruce Atchison
    commented 2025-05-01 19:25:01 -0400
    One huge fault Danielle Smith has is her net zero fixation. Taxing industries doesn’t slow global warming. It enriches green grifters and impoverishes us citizens. I have the same beef with Pierre Poilievre too. It’s time to say that the green emperor has no clothes.