Feds, Alberta nearing deal on $130/tonne industrial carbon price by 2040: Source

Ottawa and Alberta are closing in on a deal on industrial carbon pricing.

A source with knowledge of the discussions who was not authorized to speak publicly about them tells The Canadian Press the two governments expect to announce an effective carbon price of $130 per tonne of greenhouse gas emissions as of 2040.

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The agreement stems from the energy pact Canada and Alberta reached last fall which tied various climate policies to an Alberta oil pipeline to the West Coast.

The agreement cited a $130 per tonne target without saying when Alberta would need to get there.

While Prime Minister Mark Carney has rolled back several of the Liberal government’s climate measures over the year he’s been in office, he has always tied those rollbacks to the promise of an effective carbon pricing system.

Environment groups on Wednesday slammed the government for setting a deadline of 2040 and said Ottawa is gutting industrial carbon pricing, while oilsands companies have long called for carbon pricing to be scrapped.

This report by The Canadian Press was first published May 13, 2026.