Alberta Tells Carbon Tax Carney to Suck a Cold Stone

(AP Photo/Ben Curtis, File)

Oh, my GAWD -this is getting so good.

I mean, to the point where there's no 'Republic of Alberta...YET,' good.

The morning after the country went to the polls, Alberta Premier Danielle Smith laid down the law to newly elected Canadian Prime Minister and WEF/Davos climate cult toadie Mark Carney that she - meaning Alberta - wasn't going to stand for any NetZero nonsense out of Ottawa. They'd quite had their fill, thank you.

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At the same time, the liberal victory set fire to a somnulent Alberta independence movement, which had been lying fallow for decades. Much discussed and grumbled over, but never acted on.

While offering a sop to consumers in order to get elected by eliminating the Canadian consumer carbon tax, Carney has doubled down on not only retaining the industrial tax, but almost doubling it. He intended to stick to the previous target of raising the tax from the $95 per ton (where it is now) to $170 by the end of the decade.

Coincidentally, that carbon tax would hit Alberta's fossil fuel-rich economy and industrial base far harder than other provinces that produce far less in comparison to them.

As Alberta was already feeling pretty abused in that they send $20B a year to Ottawa, which the province never sees returned in any sort of benefits or respect, there was bound to be a difference of opinion on the necessity for such an onerous, inexorable tax increase from the capital.

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Yesterday, Smith decided Alberta would play, but only at the threshold they felt they could tolerate and no further.

She announced a freeze and basically dared Ottawa to do something about it.

Smith cited the Trump tariffs and an unstable business climate as part of her rationale. There are carbon capture schemes in the works in the province that might help mitigate what Ottawa sees as an obligation.

Alberta is freezing its industrial carbon tax in a bid to help companies struggling with the effects of U.S. tariffs, potentially setting up a challenge to the government of Prime Minister Mark Carney.

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Canada’s top oil-producing province will keep the tax at $95 per metric ton for an indefinite time, officials said at a press conference Monday. The levy had been scheduled to rise to $110 per metric ton next year and to $170 by 2030, according to federal rules that govern the provincial carbon tax levels.

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The move by Alberta Premier Danielle Smith has the potential to cause a clash with Carney, who has said he wants to keep the industrial carbon tax despite eliminating the consumer levy. Smith, a conservative who has been leading the province since 2022, has fought with the government in Ottawa over matters that affect its massive oil industry, which produces the bulk of the country’s crude.

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Of course, cultists are concerned that the freeze will lead to fewer decarbonization projects. It's kind of hilarious how there's not a word about the climate, just whining that their bottom line is taking a hit, which should sound familiar. Something scammy along the lines of 'if everyone else isn't forced to pay for it, no one will buy into it.'

...Proponents of the national industrial carbon price believe Alberta’s decision will lead to fewer emissions reductions and create greater uncertainty for investors in decarbonization projects.

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Companies building such developments can receive credits from their project, which can then be sold.

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Without a stable industrial carbon pricing system, including a price that rises over time, we will not see large investments in decarbonized industries in Alberta,” said Janetta McKenzie, director of the Pembina Institute’s oil and gas program.

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Alberta’s decision is a step backward as the country’s industrial carbon price was designed to protect industry competitiveness by keeping incentives to reduce emissions high — but incentives to reduce production and investment low, said Dale Beugin, executive vice-president at the Canadian Climate Institute.

Smith's administration is talking to companies and gathering data in the meantime.

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...The industrial carbon tax system may see more changes in the months ahead based on feedback the provincial government has gathered from companies, said Rebecca Schulz, Alberta’s minister of environment and protected areas.

There is a “real opportunity to ensure that this is still a destination for those capital dollars,” Schulz said at the press conference. Still, companies were clear “that a carbon price too high will just drive away investment in hurt our economy at the worst possible time.”

There's been no official reaction from the Canadian government yet, but Smith and her group are hoping it starts a conversation that goes in a productive direction.

...“Additional discussion is needed to enable an approach to carbon management that is effective and enables investment in our natural resources.”

The alliance represents Canada’s largest oil sands companies working together to provide energy alongside environmental solutions.

Smith and Schulz said they hope the freeze will prompt that very conversation with Prime Minister Mark Carney, who’s set to unveil his new cabinet Tuesday after last month’s federal election.

Schulz told reporters that as a result of the freeze, Alberta will remain compliant with federal carbon pricing rules until Ottawa’s benchmark is increased.

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In the meantime, Smith's move and Carney's climate intransigence have only added more fire to the independence movement.

It's gonna be a fun summer to watch the neighbors.

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HotAir Staff 12:25 PM | May 13, 2025
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