The Canadian Taxpayers Federation is calling on Alberta Premier Danielle Smith to walk away from Ottawa’s carbon pricing framework, warning that higher industrial carbon taxes could drive up costs for consumers and push investment out of the province.The pushback comes after Prime Minister Mark Carney defended Canada’s industrial carbon price this week, saying it remains relatively low compared to its stated benchmark and suggesting changes may be coming.“The effective carbon price in this country is actually quite low relative to the headline price, in the $20 to $30 in most Canadian markets, and that’s something we are working to rectify,” Carney said Thursday when asked about ongoing negotiations with Alberta.Canadian Taxpayers Federation Alberta director Kris Sims said any move to increase carbon pricing would further strain households already facing high costs.“Albertans can’t afford a higher carbon tax and the premier needs to stand up to the prime minister by rejecting the carbon tax,” Sims said.At the centre of the dispute is a memorandum of understanding signed in November between Ottawa and Alberta. Under the agreement, the federal government indicated it would consider approving future pipeline projects and lifting the oil and gas production cap, while Alberta would accept Ottawa’s industrial carbon tax set at $130 per tonne..Critics of the deal argue the proposed conditions could make Alberta energy less competitive globally. Economist Jack Mintz has warned the structure of the agreement risks raising production costs to the point where some projects may no longer be viable in international markets.Concerns are already being reflected in investment decisions. A Canadian company recently paused an $8-billion expansion project in Alberta, citing uncertainty tied to rising carbon costs.Sims said the policy environment is already discouraging investment and driving jobs elsewhere.“Carbon taxes make life more expensive for Albertans and it’s mind-boggling that Saskatchewan is the only province standing up to Ottawa about this,” she said. “We are seeing increased costs and jobs being scared away to the United States and it’s time to scrap all carbon taxes in Canada.”The federal government maintains carbon pricing is a key tool in meeting emissions targets, while critics argue it functions as a broad-based cost increase on consumers and industry. The debate continues as Ottawa and Alberta negotiate the future of energy policy and emissions regulation.
