Alberta and pollution pricing

Protecting the environment and growing the economy go together. In 2016, the federal government worked with provinces, territories, and with input from Indigenous Peoples on Canada’s first comprehensive climate action plan, which includes a stringent, fair, and efficient price on carbon pollution.

As part of Canada’s plan, provinces and territories had the flexibility to maintain or develop a carbon pollution pricing system that works for their circumstances, provided it meets the federal standard.

Alberta has been a leader in pricing carbon pollution in Canada. Alberta’s pollution pricing system, with an output-based pricing system in place since 2007 and a carbon levy on fuel in place since 2017, meets the federal benchmark stringency requirements.

Please contact the Province of Alberta for additional details and information on its pollution pricing system and programs.

Canada’s clean growth investments in Alberta

The federal government’s Low Carbon Economy Fund is reducing emissions and creating opportunities in Alberta by providing nearly $150 million to support projects that:

  • Install energy efficiency measures in affordable housing, businesses, not-for-profit organizations, and institutions, helping modernize buildings and making life more affordable.
  • Give instant rebates for everyday products that help save energy and save money. Eligible products include LED bulbs and fixtures, water-saving devices, smart power bars, dimmers and motion sensors, and programmable thermostats.
  • Install solar power in Indigenous communities and support other energy-efficient upgrades, bringing energy costs down for the community.
  • Replant forests in the areas devastated by wildfires.

Since 2016, the Government of Canada has allocated over $2.4 billion for investments in public-transit projects in Alberta. Calgary’s Green Line light-rail project will take people, from north to south, faster, and more safely than ever. We’ve also made investments in Medicine Hat and Lethbridge and helped build bus stops throughout the municipality of Wood Buffalo. These are ways we’re making sure that public transit is available for all and that people can get where they need to go, quickly and safely, while reducing pollution. It’s a part of the Government’s Investing in Canada Plan.

The Government also allocated over $1 billion for investments in Geen Infrastructure in Alberta, for projects that reduce emissions, build resilience to the impacts of climate change, or provide additional environmental benefits. The governments of Alberta and Canada are working together to fund priority projects that will help reduce pollution and grow the economy.

The Government of Canada is investing in emission-reduction projects. Natural Resources Canada has provided over $9.5 million through its Clean Technology Research, Development, and Demonstration program to support a state-of-the-art research facility at the Alberta Carbon Conversion Technology Centre, in Calgary, which will allow new clean technologies to be tested on a near-commercial scale.

The federal government is also making direct investments to support the development and deployment of clean technologies. For example, through Sustainable Development Technology Canada, $10 million was provided to support Alberta’s MEG Energy Corp. to develop and deploy a new technology that reduces the amount of steam required for bitumen production. This new technology is expected to reduce the greenhouse gas emission intensity by as much as 43 per cent.

To protect Canadians from the impacts of climate change, the Government of Canada is working with Alberta and other prairie provinces on a regional climate-adaptation centre to jointly deliver climate services with the Government of Canada’s Canadian Centre for Climate Services. Other specific initiatives to increase resilience to climate impacts within Alberta include educating and raising awareness, working with Indigenous communities to assess the risks posed by forest fires, and floodplain mapping.

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