Alberta Premier Danielle Smith is not concerned about the new prime minister’s decision to eliminate the consumer carbon levy, despite previously advocating for its demise. She believes that the real test will be how the federal government will levy carbon pricing on industrial polluters. Smith is wary of potential massive increases in industrial carbon taxes and is uncertain about how the federal program will interact with Alberta’s pre-existing industrial carbon tax. Prime Minister Mark Carney had promised to remove the consumer carbon tax during his leadership campaign and will be increasing the levy on industrial polluters.
The consumer portion of the carbon pricing program was eliminated by Prime Minister Mark Carney just hours after he took office. People who received rebates on the carbon price will receive one final payment in April, at the same time the price was set to increase. Alberta has had its own industrial carbon tax for over a decade, adding to uncertainty about potential increases under the federal program. This uncertainty, combined with Carney’s commitment to raising industrial pollution levies, has led Smith to call for an immediate election to gain clarity on how the oil and gas sector will be affected.
Alberta has a history of opposing Ottawa’s carbon pricing program, with former premier Jason Kenney taking the federal government to court over its constitutionality. Smith has also criticized the selective application of the tax, particularly an exemption for home heating oil users in certain provinces. She has called on Ottawa to provide exemptions for farmers using propane and natural gas. Saskatchewan Premier Scott Moe has also been critical of the carbon tax, taking Ottawa to court over it and stopping remittance of levies on natural gas. The end of the carbon levy was welcomed by Opposition NDP Leader Carla Beck, who noted that it will reduce the cost of gasoline and natural gas for consumers.
The federal government’s carbon pricing program has been a contentious issue in provinces like Alberta and Saskatchewan, where leaders have challenged its constitutionality and impact on industries. Smith and Kenney have long criticized the carbon tax for contributing to the cost of living issues in the country. Saskatchewan Premier Scott Moe has also expressed concerns about the levy making life more expensive and harming businesses. Despite legal challenges, the Supreme Court ruled in favor of the federal government, upholding the constitutionality of the carbon pricing program.
Smith’s concerns about potential increases in industrial carbon taxes under the new federal program reflect a broader debate over climate policy and its impact on different sectors of the economy. The end of the consumer carbon levy may provide relief for consumers in terms of reduced costs for gasoline and natural gas. However, the implications for industrial polluters and the oil and gas sector remain uncertain, leading to calls for more clarity and transparency from the federal government. The ongoing disputes over carbon pricing highlight the challenges of balancing environmental initiatives with economic concerns at both the provincial and federal levels.
