Alberta’s government is freezing its industrial carbon tax at $95 per tonne in a move to protect jobs and defend industry in the face of escalating U.S. tariffs.The decision, announced Monday, comes as industries across the province grapple with increased costs, supply chain disruptions and growing uncertainty tied to new American trade measures. Officials say the freeze is designed to provide economic relief and preserve competitiveness across key sectors including oil and gas, petrochemicals, cement, mining, forestry and manufacturing..“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 is essential that we have a reasonable carbon pricing system, not one that will price our industries out of global markets.”The carbon price was previously set to rise to $110 per tonne in 2026 and eventually reach $170 by 2030 under the province’s Technology Innovation and Emissions Reduction (TIER) system. Industry leaders had raised concerns about those planned increases amid the current economic climate..Rebecca Schulz, Minister of Environment and Protected Areas, said the freeze aims to shield the tens of thousands of workers whose livelihoods depend on industrial sectors.“Industry is at the heart of Alberta, and we will continue to keep our industry competitive and strong,” she said.Energy and Minerals Minister Brian Jean said maintaining a stable carbon price will help Alberta continue its work on clean energy while staying globally competitive.“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,” he said..The TIER system, which has been in place since 2007, uses collected funds to support a range of low-emissions technologies including geothermal, hydrogen, carbon capture, and methane reduction projects.The government emphasized that despite the freeze, Alberta remains committed to emissions reduction through innovation rather than tax hikes.Alberta has reduced oil sands emissions intensity by more than 22% even as production has grown by 90%, according to provincial figures. The next legislated review of the TIER system must take place by the end of 2026..The Canadian Taxpayers Federation is applauding Smith’s decision to freeze the province’s industrial carbon tax.“Smith is right to freeze the cost of Alberta’s hidden industrial carbon tax that increases the cost of everything,” said Gage Haubrich, CTF Prairie Director. “This move is a no-brainer to make Alberta more competitive, save taxpayers money and protect jobs.”Prime Minister Mark Carney said he would “improve and tighten” the industrial carbon tax.The industrial carbon tax currently costs businesses $95 per tonne of emissions. It is set to increase to $170 per tonne by 2030. Carney has said he would extend the current industrial carbon tax framework until 2035, meaning the costs could reach $245 a tonne. That’s more than double the current tax.The Saskatchewan government recently scrapped its industrial carbon tax completely.Seventy percent of Canadians said businesses pass most or some industrial carbon tax costs on to consumers, according to a recent Leger poll.“Smith needs to stand up for Albertans and cancel the industrial carbon tax altogether,” Haubrich said. “Smith deserves credit for freezing Alberta’s industrial carbon tax and she needs to finish the job by scrapping the industrial carbon tax completely.”
