Alberta may drop industrial carbon pricing as provincial leaders weigh alternatives
Alberta is weighing whether to scrap its industrial carbon tax, a move that could upend a major emissions reduction policy and jeopardize renewable energy investments across the province.
Drew Anderson reports for The Narwhal.
In short:
- A leaked email from the Canadian Renewable Energy Association reveals Alberta may remove or overhaul its Technology Innovation and Emissions Reduction (TIER) system, with no further stakeholder consultation planned.
- The proposed changes, ranging from scrapping the system entirely to replacing it with technology investment requirements, may not align with federal requirements and might not lead to actual emissions reductions.
- Industry experts and advocates warn that eliminating TIER could destabilize renewable energy projects that rely on emissions credits and reduce investment in carbon-reducing technologies.
Key quote:
“You are sort of pretending that you have an emissions pricing program when probably, you really don’t.”
— Andrew Leach, professor of economics and law, University of Alberta
Why this matters:
Beyond the economic and climate implications, there are health consequences as well: Fewer incentives to curb emissions could mean more pollution and heat-related stress, both of which disproportionately affect vulnerable populations. What’s emerging is a broader reckoning over how Canada negotiates economic identity, energy politics, and environmental health in an era of accelerating climate risk.
Related: Oil companies shift carbon capture risk to Alberta taxpayers
