Premier Danielle Smith announced today that the province will indefinitely freeze its industrial carbon tax. The tax was set to increase from $95 to $110 per tonne in 2026 and continue rising to $170 by 2030. Now, it will remain at the $95 per tonne indefinitely.
Premier Smith emphasized that the freeze was necessary due to increasing challenges from external factors and rising operational costs that already strain local industries. “What we have heard from industry is that any further increases to the industrial carbon tax past $100 per ton would be detrimental to their businesses,” Smith stated, highlighting the economic risks posed by escalating taxes.
Smith has clarified that her government rejects policies that would undermine the growth of Alberta’s oil and gas sectors. “Alberta remains committed to reducing emissions through technology and innovation, not through unrealistic taxes,” Smith asserted.
While the freeze is positioned as a long-term strategy to ensure industry growth, it also opens a broader conversation about Alberta’s relationship with Ottawa. Premier Smith has previously threatened to pursue measures that could lead to a provincial referendum on sovereignty. However, she clarified that Alberta’s push for greater autonomy does not equate to separation from Canada, but rather an effort to secure a more favourable deal for the province’s economic future.
The Alberta government remains focused on innovation as a core strategy for emissions reduction. Smith noted that new technologies like small modular reactors and direct air capture are integral to achieving carbon neutrality by 2050.
As energy demands rise globally, Alberta’s oil and gas sector is under increased scrutiny, and the response will likely continue to shape the national debate on carbon pricing and emissions reduction strategies.