Defending Alberta industry during U.S. tariffs
Alberta’s government is freezing its industrial carbon price to keep industry competitive and defend jobs in response to the uncertainty caused by United States’ tariffs.
The current tariffs being imposed by the United States are increasing costs, disrupting supply chains and creating uncertainty for industry, making it challenging to operate efficiently and stay globally competitive. Action is needed to defend Alberta’s economy and Albertan jobs.
In response to feedback from industry leaders, Alberta is freezing the industrial carbon price at the current rate of $95 per tonne of emissions. This freeze provides certainty and economic relief to oil and gas, electricity, petrochemical, manufacturing, cement, pulp and paper, mining, forestry and other sectors employing tens of thousands of workers across the province.
“This freeze will provide certainty, stability and economic relief to the businesses that contribute so much to all of Canada. With the change in government south of the border, it essential that we have a reasonable carbon pricing system, not one that will price our industries out of global markets. Alberta has had a reasonable, industry-led carbon-pricing system in place since 2007. This is provincial jurisdiction, and we will not needlessly burden our businesses with further increases dictated by Ottawa that would be detrimental to our economy.” — Danielle Smith, Premier
“By freezing the TIER price, we are defending the businesses that drive our economy and the jobs that tens of thousands of families rely on against tariffs, threats and uncertainty. Industry is at the heart of Alberta, and we will continue to keep our industry competitive and strong and will not allow it to be shut down or be put at risk of falling behind during this challenging time.” — Rebecca Schulz, Minister of Environment and Protected Areas
“This freeze balances industry’s need for predictability and stability and acknowledges that Alberta competitiveness will be irreparably harmed by an industrial carbon price that goes too high and would hurt our efforts to produce the cleanest energy in the world.” — Brian Jean, Minister of Energy and Minerals
The current tariffs imposed by the United States come after a decade of anti-industry and anti-development policies by Canada’s federal government. These rules and regulations have decreased Alberta’s competitiveness, increased uncertainty and driven away much needed investment since 2015.
Alberta remains committed to reducing emissions through the development and implementation of new technologies, not unrealistically high taxes, while responsibly powering the world for decades to come.
Quick facts
Alberta’s industry-led industrial carbon tax system, TIER, has been in place since 2007. Alberta’s industrial carbon pricing and emissions trading system, known as the TIER system, sets an industrial price for carbon dioxide equivalent (CO2e) emissions produced by regulated facilities.
Alberta has reduced emissions intensity from the oil sands by over 22 per cent while production increased by 90 per cent.
Previously, the price was scheduled to rise to $110 per tonne in 2026 and continue increasing to $170 per tonne by 2030.
The next legislated review of the TIER system must take place by Dec. 31, 2026.
TIER funding supports geothermal, hydrogen, energy storage, methane emissions reduction, and carbon capture, utilization and storage technologies for industries across the province.