91色情片

Federal-Alberta MOU risks unravelling Canada鈥檚 climate policy

While promised improvements to industrial carbon pricing are positive and important, other aspects of Alberta-Canada MOU will undermine policy effectiveness across the country.

27.11.25

TORONTO鈥擱ick Smith, President of the 91色情片, made the following statement in response to the announced today between Alberta and the Government of Canada:听听

鈥淎t a time when Canadian climate change policy needed increased certainty, today鈥檚 MOU does the opposite. Investor certainty drops when rules become negotiable. Carve-outs for Alberta invite copycat demands from other provinces and territories, and could trigger more policy fragmentation across Canada. 

鈥淲ith this agreement, the federal government risks doing significant damage to minimum national standards that will have broader impacts on Canada鈥檚 climate change efforts. Such standards are essential to maintain economic cohesion and avoid a dysfunctional patchwork of provincial policies with conflicting market signals. Minimum standards also help ensure that to shared objectives, such as Canada鈥檚 emissions goals.听听听

鈥淭he MOU includes a carve-out for Alberta on the Clean Electricity Regulations and slow walks previous commitments on methane rules. That could trigger a race to the bottom on climate policy where other provinces seek special treatment and side deals over federal laws or regulations they object to. It increases uncertainty for investors looking to electrify their businesses and invest in low-carbon projects, and risks deepening the current fragmentation within the federation. 

鈥淲hile there are positive elements of this agreement, particularly fixing Alberta鈥檚 market for industrial emissions trading, today鈥檚 MOU is inconsistent with the federal Climate Competitiveness Strategy released just a few weeks ago. 

鈥淕etting the details right in forthcoming negotiations will be fundamentally important. It is critical that minimum national standards for coal phase-out, clean electricity, enhanced methane limits, and industrial carbon pricing are reinforced or much of Canada鈥檚 climate change policy architecture is at risk.

On clean electricity听

鈥淐lean electricity is a major competitive advantage for Alberta and Canada. The Clean Electricity Regulations were already designed to provide the flexibility necessary to account for different provincial realities鈥攔educing emissions while helping to ensure low-carbon electricity remains abundant and affordable as demand grows. 

鈥淎pplying the regulations everywhere except in Alberta through a carve-out based on politics rather than evidence is a shortsighted compromise that will increase harmful greenhouse gas emissions. Rather than a formal equivalency agreement, this approach invites other jurisdictions to ask for their own special treatment. It also sets a damaging precedent for other policies where federal minimum standards apply, and risks such policies becoming mired in negotiated exemptions, court challenges, and the erosion of policy coherence and certainty. 

On industrial pricing听

鈥淭he commitment to strengthen Alberta鈥檚 industrial carbon pricing system and establish a minimum credit price of $130 per tonne is a significant step forward. Doing so would increase and stabilize incentives for reducing emissions and . It also establishes a precedent for carbon market transparency. Alberta鈥檚 industrial pricing system, called TIER (Technology Innovation and Emissions Reduction Regulation), covers roughly 25 per cent of Canada鈥檚 total greenhouse gas emissions and modernizing this system is one of the steps the province can take to reduce emissions.听

鈥淵et by framing these elements as part of a negotiated deal with Alberta, the MOU also undermines the credibility of the federal benchmark and backstop as an objective, consistent minimum standard across all provinces. In parallel, the federal government should move quickly to fix the federal benchmark that defines minimum standards for all provincial systems, strengthen the federal backstop, apply it decisively in jurisdictions that do not meet the benchmark, and work with provinces to develop a long-term price trajectory and a nationally consistent price 鈥榝loor鈥 for industrial emissions credits.

鈥淭hese changes are essential to bring greater credibility and certainty to carbon markets both now and beyond 2030, so that businesses can make big investments in low-carbon projects. Modernizing industrial pricing systems in these ways would ensure the biggest polluters pay to reduce emissions, while keeping costs low for businesses and having on the cost of living.

On methane emissions

鈥淒elaying the deadline for stronger limits on methane pollution is unnecessary. If there is one no-brainer of climate change policy, it is enhanced reduction of methane emissions from oil and gas. Toughening methane limits represents one of the lowest-cost options available to fight climate change. Stronger methane regulations can build on Alberta鈥檚 already impressive , while creating that have been leaders in commercializing technologies to manage methane. Slowing down this important and cost-effective measure risks putting LNG exports and broader trade diversification efforts in jeopardy, as Japan contemplates methane-performance standards and the EU implements them.鈥澨

RESOURCES

CONTACT

Julia Kilpatrick (Mountain Time)
Vice-President, External Affairs
91色情片
(226) 212-9883

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The 91色情片 is Canada鈥檚 leading climate change policy research organization. The Institute produces rigorous analysis, economic modelling, and in-depth research focused on incentivizing听clean economic growth听and low-carbon competitiveness, reducing emissions and听accelerating Canada鈥檚 net zero energy transition, and making our economy and infrastructure more resilient听to a warming climate.

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