L’entente Alberta-Ottawa améliore et entrave à la fois la politique climatique la plus importante du Canada
Summary
The Canadian Climate Institute argues that the memorandum of understanding between Alberta and Canada fails to effectively address the dysfunction of Alberta's industrial carbon pricing system. While the agreement introduces a price floor and hedging contracts to stabilize carbon credit markets, the Institute claims the price levels—$60 per tonne by 2030 and $110 by 2040—are too low to drive necessary investments or meet 2050 net-zero targets. Furthermore, the document warns that this agreement sets a low national benchmark that may encourage other provinces to weaken their own carbon pricing systems, potentially hindering Canada's overall climate policy effectiveness.
Key insights
- The memorandum of understanding (MOU) introduces a policy architecture intended to stabilize carbon credit markets through a minimum market price and carbon price fluctuation hedging contracts, which the author suggests will likely serve as a model for other provinces.
- The established price floors are considered insufficient to achieve Canada's interim targets or its 2050 net-zero commitment, with a minimum credit price of $60 per tonne by 2030 and $110 per tonne by 2040.
- Low carbon prices under the MOU will likely necessitate significant taxpayer subsidies for the Pathways carbon capture and storage project to be viable.
- The agreement risks creating a low national standard for industrial carbon pricing, potentially leading other provinces to demand similar minimum prices and reducing the effectiveness of existing provincial systems.
- The author argues that strengthening the system to a minimum credit price of $130 per tonne would have a negligible impact on the cost of oil, adding only about 50 cents per barrel to Western Canada Select oil.
Cite the original document
- APA
- Canadian Climate Institute (2026). L’entente Alberta-Ottawa améliore et entrave à la fois la politique climatique la plus importante du Canada. https://institutclimatique.ca/lentente-alberta-ottawa-ameliore-et-entrave-a-la-fois-la-politique-climatique-la-plus-importante-du-canada/
- Chicago
- Canadian Climate Institute. L’entente Alberta-Ottawa améliore et entrave à la fois la politique climatique la plus importante du Canada. 2026. https://institutclimatique.ca/lentente-alberta-ottawa-ameliore-et-entrave-a-la-fois-la-politique-climatique-la-plus-importante-du-canada/.
- Wikipedia
- {{cite press release |author=Canadian Climate Institute |title=L’entente Alberta-Ottawa améliore et entrave à la fois la politique climatique la plus importante du Canada |date=21 May 2026 |url=https://institutclimatique.ca/lentente-alberta-ottawa-ameliore-et-entrave-a-la-fois-la-politique-climatique-la-plus-importante-du-canada/ |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @misc{canadianclimateinstitute2026lentente, author = {{Canadian Climate Institute}}, title = {{L’entente Alberta-Ottawa améliore et entrave à la fois la politique climatique la plus importante du Canada}}, publisher = {Canadian Climate Institute}, year = {2026}, month = may, url = {https://institutclimatique.ca/lentente-alberta-ottawa-ameliore-et-entrave-a-la-fois-la-politique-climatique-la-plus-importante-du-canada/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
Full text
Collected · Record updated