What are the costs of strengthening the industrial carbon price?

The author asserts that industrial carbon pricing is designed to provide emissions reduction incentives while maintaining low costs for industry. For Alberta's oil sands, current average out-of-pocket costs are 9 cents per barrel, and are projected to rise to approximately 50 cents per barrel by 2030 if the policy is strengthened to ensure credits trade at $130 per tonne. The Canadian Climate Institute's analysis of 17 years of provincial trade data across 10 provinces and 19 sectors found no statistically significant evidence that carbon pricing caused export contraction.

• Current average out-of-pocket costs for oil sands producers, net of royalty and tax deductions, are 9 cents per barrel, though costs vary by facility efficiency.
• If the Alberta-Ottawa memorandum of understanding is implemented to ensure carbon credits trade at a minimum of $130 per tonne, the average cost to oil sands producers is projected to be 50 cents per barrel by 2030.
• A study by the Canadian Climate Institute using 17 years of provincial trade data from 10 provinces and 19 industrial sectors found no statistically significant evidence that carbon pricing led to export contraction.

APA

Canadian Climate Institute (2026). What are the costs of strengthening the industrial carbon price? https://climateinstitute.ca/industrial-carbon-pricing-will-cost-timbit-per-barrel-canada-oil-sands-sector/

Chicago

Canadian Climate Institute. What are the costs of strengthening the industrial carbon price? 2026. https://climateinstitute.ca/industrial-carbon-pricing-will-cost-timbit-per-barrel-canada-oil-sands-sector/.

Wikipedia

{{cite press release |author=Canadian Climate Institute |title=What are the costs of strengthening the industrial carbon price? |date=6 March 2026 |url=https://climateinstitute.ca/industrial-carbon-pricing-will-cost-timbit-per-barrel-canada-oil-sands-sector/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{canadianclimateinstitute2026what, author = {{Canadian Climate Institute}}, title = {{What are the costs of strengthening the industrial carbon price?}}, publisher = {Canadian Climate Institute}, year = {2026}, month = mar, url = {https://climateinstitute.ca/industrial-carbon-pricing-will-cost-timbit-per-barrel-canada-oil-sands-sector/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }