The Canadian Taxpayers Federation (CTF) called on the Alberta government to scrap the industrial carbon tax after the province proposed changes slated for the fall.

“It’s baffling that Alberta is still clinging to its industrial carbon tax even though Saskatchewan has declared itself to be a carbon tax-free zone,” said Kris Sims, CTF Alberta director. “Prime Minister Mark Carney is cooking up his new industrial carbon tax in Ottawa and Alberta needs to fight that head on,” Sims added.

“Alberta having its own industrial carbon tax invites Carney to barge through our door with his punishing industrial carbon tax.”

Alberta's industrial carbon tax (TIER) remains, but as of September 16, companies can avoid provincial emissions fees by investing in their own reduction projects, reported CBC News.

Premier Danielle Smith likened it to a recycling program, stating it would incentivize companies to invest in emissions reductions in Alberta, avoiding heavy regulation or government bias.

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Environment Minister Rebecca Schulz stated these changes are a “significant win for industry,” allowing companies to reinvest in their facilities and choose on-site technologies, which helps with production economics and emissions reduction.

Companies now have eight years to invest in compliance infrastructure or pay emission fees; smaller companies (under 100,000 tonnes annually) are exempt. The current system supports provincial emissions reduction technologies by requiring companies to pay taxes, reduce emissions, or trade credits.

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.

MORE: https://t.co/2KUycXdTfF pic.twitter.com/ChpQF6yK7e

— Rebel News (@RebelNewsOnline) May 2, 2025

Premier Smith announced the changes following extensive consultations with oil and gas officials, which ended on March 25.

Opposition NDP energy critic Nagwan Al-Guneid questioned the announcement’s lack of specific details on what kind of projects will qualify for companies to invest in under the new rules.

Kendall Dilling, the president of the Pathways Alliance, told CBC that the proposed changes will promote investment in emissions reduction technology.

Dilling stated that the alliance, representing Canada's largest oilsands companies collaborating on a potential carbon capture and storage project, commends the province's support for the oilsands industry.

Premier Smith announces she will be freezing the province's industrial carbon tax at $95 per tonne to protect Alberta's jobs and its energy sector. pic.twitter.com/aSVh5arb8g

— Rebel News (@RebelNewsOnline) May 12, 2025

On May 12, Smith froze the carbon tax in response to U.S. tariffs and federal ideology.

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

Alberta's industrial carbon tax, set to rise to $110 per tonne next year, must be unfrozen by year-end to maintain compliance with federal rules. Environmental advocates are urging Carney to enforce the law if the province does not.

During the federal election, Carney promised to replace the consumer carbon tax with a larger, hidden industrial carbon tax. He also proposed “border adjustment mechanisms” (carbon tax tariffs) on imports from countries without national carbon taxes.

Canada’s first carbon tax–free zone: Scott Moe shuts down the green scam in

Scott Moe just flipped the switch on the last piece of Trudeau’s carbon tax cash grab — and made Saskatchewan the first province in Canada to be fully carbon tax free.https://t.co/hhtIwYfYEl

— Rebel News (@RebelNewsOnline) March 27, 2025

A Leger poll for CTF revealed 70% of Canadians believe businesses transfer most or some industrial carbon tax costs to consumers. They called on Smith to eliminate the tax, citing her past opposition and Saskatchewan's example.

“Alberta should stand with Saskatchewan and obliterate all carbon taxes in our province, otherwise we are opening the door for Ottawa to keep kicking us,” Sims said.

Alberta has had an industrial carbon tax system since 2007.