Alberta Premier Danielle Smith froze the industrial carbon tax Monday morning in response to U.S. tariffs and federal ideology.

"The current tariffs being imposed by the United States are increasing costs, disrupting supply chains and creating uncertainty for industry, making it challenging to operate efficiently and stay globally competitive," Smith told reporters.

Industry representatives previously said that increasing the carbon tax beyond $100 per tonne would harm their businesses and competitiveness.

"That's why today we're announcing that effective immediately, Alberta is freezing the industrial carbon tax under Alberta's Technology and Innovation emissions reduction System [TIER] at $95 per tonne of emissions," Smith said.

Alberta's industrial carbon tax, set to reach $170 per tonne by 2030, was scheduled to increase to $110 next year.

Companies pay taxes, reduce emissions, or trade credits under the current system. 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. TIER has been in place since 2007.

"Over the past months we have been engaging with industry on the future of our TIER program," added Environment Minister Rebecca Schulz.

The province invited the Canadian Renewable Energy Association (CREA) to a March 25 TIER regulation meeting and was told there would be no further consultation.

"Our industry, from energy to agriculture, not only empowers our economy, but the wealth that they generate allows us to provide Albertans with the essential services they rely on from healthcare to education," Smith told reporters.

"That's why it's so important that we listen to industry concerns and help develop a business environment where they can thrive," she added.

Schulz notes that competitiveness is the difference maker during tough times. "Our industries, whether they drill, mine, manufacture, process, or build, are among the best and most productive in the world." 

She claimed that freezing the tax "will provide a stable, predictable and effective environment for companies to operate and remain competitive."

Seventy percent of Canadians said businesses pass most or some industrial carbon tax costs on to consumers, according to a Leger poll commissioned by the Canadian Taxpayers Federation.

They urged Smith to follow Saskatchewan's lead in eliminating the industrial carbon tax, highlighting her past opposition to such taxes.

Conservative leader Pierre Poilievre vowed to eliminate the industrial carbon tax at the federal level. Premier Scott Moe endorsed the promise, while Smith opposed further tax hikes.

An industry email obtained by The Narwhal suggests Alberta considered eliminating the industrial carbon tax, seemingly contradicting a letter from its environment minister.

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

On Monday, Smith emphasized her commitment to technology-driven emissions reduction, contrasting it with Ottawa's past support for higher taxes, and highlighted Alberta's role in responsible global energy provision.

Ottawa's plan for the environment means "fewer jobs for Albertans, less revenue to invest in our public services, and decreased innovation across our industries," the premier said.

Schulz stated that added costs and delays from the carbon tax have made Canada appear unwelcoming to business. "We cannot risk falling behind and cannot continue to put jobs and our economy at risk with the uncertainty of U.S. tariffs coupled with ideological policy."

"We will stand up for our province, support our industries, and protect Albertans' livelihoods," Smith concluded, "but make no mistake, our government will always do what is right for Alberta, no matter what Ottawa says."

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