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The federal government and the Alberta government are nailing down a deal on industrial carbon pricing, largely considered Canada’s most important policy for driving down harmful greenhouse gas pollution.
CBC News has confirmed that both levels of government have agreed that Alberta’s effective carbon price would increase to $130/tonne by 2040.
The Calgary Herald also reported on that timeline. Sources told CBC News an announcement is expected before the end of this week.
The sources spoke to CBC News on the condition that they not be named because they were not authorized to speak publicly about the talks.
Canada has a national carbon price that is supposed to apply to all provinces and territories. The headline price was supposed to rise to $170/tonne by 2030.
The Alberta system system that applies to heavy emitters is called Technology Innovation and Emissions Reduction Regulation, or TIER.
According to the energy accord that both governments signed in November, that carbon price was supposed to “ramp up to a minimum effective credit price of $130/tonne.”
A source with knowledge of the tentative deal said the price will ramp up from $95/tonne to $100/tonne next year and stay at that level until 2030.
Then it will increase in $3 increments until reaching $130/tonne in 2040.
Representatives from the Alberta government are expected to attend a virtual cabinet meeting to discuss the plan.
The source stressed there are two to three outstanding issues that must be resolved before an announcement is made, but the prime minister is tentatively scheduled to travel to Alberta to make the announcement with Premier Danielle Smith on Friday.
Industry players have said that establishing pricing is key to reassuring those looking to invest in energy projects. It is also relevant to the construction and financing of the Pathways Plus carbon capture, utilization and storage project, which was part of the memorandum of understanding.