Danielle Smith holds a press conference in Edmonton on May 6, 2025. The Canadian Press
Alberta Premier Danielle Smith has announced that her government is freezing the industrial carbon price at $95 per tonne. This decision, effective immediately, aims to protect Alberta’s industries and jobs. The move comes amid concerns over a growing tariff dispute with the United States.
Why the Freeze Was Necessary
Smith explained the importance of maintaining a competitive environment for industries in Alberta. The carbon price was initially set to rise to $110 per tonne by 2026, with plans to increase it further to $170 per tonne by 2030. However, with changing government policies in the United States, Smith said that keeping Alberta’s industries competitive is now more critical than ever.
“The change in government south of the border makes it crucial for us to have a reasonable carbon pricing system,” Smith stated. She emphasized that Alberta’s industries cannot afford to be priced out of global markets due to rising carbon costs.
Economic Relief for Businesses
Premier Smith highlighted that freezing the carbon price would bring much-needed certainty, stability, and economic relief to Alberta's businesses. This includes energy producers who are crucial to Canada’s economy and contribute significantly to the global energy market. Smith expressed her belief that this move would help Alberta businesses continue to thrive while still playing a key role in the global energy future.
The Impact of the Freeze
Environment Minister Rebecca Schulz also spoke about the freeze, calling it an essential measure to ensure the province remains competitive. She warned that going over $100 per tonne would harm Alberta’s competitiveness, making it “wildly uncompetitive.” However, Schulz clarified that the freeze doesn’t mean Alberta is abandoning its commitment to reducing emissions.
“We are absolutely a leader when it comes to energy and resource development, but also when it comes to emissions reduction,” Schulz said. She explained that the goal is to allow the province’s industries to grow, produce more, and continue reducing global emissions simultaneously.
Commitment to Emissions Reduction
Schulz also reassured the public that Alberta remains dedicated to reducing its emissions. She stated that instead of imposing additional burdens on industries, the province aims to create conditions for businesses to innovate and improve while lowering emissions. The freeze on the carbon price is not an abandonment of environmental goals, but rather a strategy to keep industries growing while continuing to work on reducing the carbon footprint.
Alberta's decision to freeze the carbon price has sparked discussions, with some applauding the move as necessary for economic survival, while others question how the government will meet its long-term environmental goals. Despite these debates, the freeze aims to offer stability to businesses in uncertain times.
