Michael Bernstein, Clean Prosperity President and CEO, made the following statement:

“The carbon pricing agreement announced today by the federal and Alberta governments solidifies the province’s industrial carbon pricing system and has the potential to strengthen it over the long term. But to fulfill that potential, Ottawa and Alberta will need to get the details right and remain committed to their plan over the coming decades.

“The agreement is a material improvement over the status quo, even though the near-term climate benefits will be modest. 

“This deal has the potential to deliver meaningful investment in decarbonization as carbon prices escalate through the 2030s. It replaces an old policy regime that wasn’t working with a new approach that can deliver both emissions reductions and economic growth.

The deal strikes a difficult balance between critical priorities for Canada: decarbonization, economic growth, and national unity. It shows how the federal and Alberta governments can work together to meet the enormous challenges facing our country.

Michael Bernstein, President and CEO, Clean Prosperity

“The deal strikes a difficult balance between critical priorities for Canada: decarbonization, economic growth, and national unity. It shows how the federal and Alberta governments can work together to meet the enormous challenges facing our country.

“One of the most significant parts of the deal is a new joint guarantee that will help carbon pricing endure into the future. Federal-provincial carbon contracts for difference will reduce risk and uncertainty for companies looking to make big investments in decarbonization in Alberta. This program promises to be a game-changer for unlocking low-carbon economic growth — one that can be expanded across Canada.    

“There’s still significant work to do. Getting the policy details right will be critical for carbon pricing to live up to its promise.

“In particular, waiting until 2040 for Alberta carbon credits to achieve a floor price of $110 per tonne risks unnecessarily delaying major decarbonization projects. The federal and provincial governments should agree on an ambitious carbon market design that will push credit prices closer to the headline carbon price.

“It’s also critical that the governments sign carbon contracts for difference with as many project proponents as possible over the next 12 months. We need to get low-carbon investment flowing and start building big projects that will reduce our emissions while creating jobs and supporting economic growth.

“Now that Alberta’s carbon pricing system is solidified, the federal and provincial governments should look at linking Alberta’s carbon market with other Canadian markets. Linking markets offers benefits such as increased liquidity and efficiency that can boost low-carbon investment across the country.”

Adam Sweet, Clean Prosperity Vice President for Western Canada, made the following statement:

“Establishing both a clear carbon price and a meaningful price floor is critical to ensuring Alberta’s industrial carbon market delivers strong and consistent signals for investment.

This agreement helps create the stability needed to accelerate deployment of emissions-reducing technologies, while supporting economic growth and positioning Canada to compete in a lower-carbon global economy.

Adam Sweet, Vice President, Western Canada, Clean Prosperity

“This agreement helps create the stability needed to accelerate deployment of emissions-reducing technologies, while supporting economic growth and positioning Canada to compete in a lower-carbon global economy.”

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