In a direct response to escalating U.S. tariffs and rising economic uncertainty, Alberta’s government is freezing the industrial carbon price at $95 per tonne. The move is aimed at protecting Alberta’s key industries and the tens of thousands of jobs they support.
Premier Danielle Smith announced the freeze Monday, citing growing pressure on Alberta’s economy due to increased costs, supply chain disruptions, and waning investor confidence triggered by trade actions south of the border.
“This freeze will provide certainty, stability, and economic relief to the businesses that contribute so much to all of Canada,” said Smith. “We won’t allow federal mandates or foreign tariffs to price our industries out of global markets.”
The Technology Innovation and Emissions Reduction (TIER) system, Alberta’s industrial carbon pricing framework, has been in place since 2007. It was scheduled to rise to $110 per tonne in 2026 and eventually reach $170 by 2030. That increase is now on hold.
Minister of Environment and Protected Areas Rebecca Schulz said the freeze was a direct response to concerns raised by industry leaders. “We are defending the businesses that drive our economy and the jobs that families rely on,” she said.
Energy and Minerals Minister Brian Jean added that pushing the carbon price too high would “irreparably harm” Alberta’s global competitiveness and undermine efforts to produce cleaner energy.
The affected sectors include oil and gas, petrochemicals, electricity, cement, pulp and paper, and forestry—industries at the heart of Alberta’s economy.
While freezing the price, Alberta says it remains committed to cutting emissions through technology, not what it calls “unrealistically high taxes.”
The next mandated review of the TIER system is set for December 2026.
