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Ottawa & Alberta Near Carbon Price Deal
14 May
Summary
- Carbon price to reach $130/tonne by 2040.
- New agreement to raise price from $95 to $100/tonne by decade's end.
- Analysts foresee market stability and investment clarity.
Federal and provincial governments are reportedly close to an agreement on a carbon pricing framework, with an official announcement anticipated by the end of this week. This proposed agreement aims to set a carbon price at $130 per tonne by 2040. As of May 14, 2026, this new accord signifies progress towards a memorandum of understanding signed last fall.
The carbon price is set to climb from $95 per tonne to $100 per tonne by the close of this decade. Subsequently, it is projected to increase by $3 each year, reaching the $130 per tonne target by 2040. Analysts suggest this structured price increase will foster market stability and provide clearer economic projections for companies considering investments in Canada's oil sector.
While the carbon price itself is a significant element, industry experts emphasize that other policy details, such as stringency and pricing guarantees, will also be crucial for investor confidence. The Business Council of Alberta anticipates positive financial outcomes for the province, potentially transforming a deficit into a surplus due to higher oil prices.
