Industrial carbon pricing can really be the key policy in Canada that catalyzes private investment in clean technology deployment and projects that reduce emissions from heavy industries.
The Province of Alberta, in the last year, has made some key changes—or signalled some key changes—to its industrial carbon pricing system, including freezing the headline price for carbon at $95 a tonne and investigating new ways and new additional compliance flexibility for farms, which threaten to undermine what is already a weak credit market and which open the door to reducing the price signal for farms to invest in emissions reductions, including in carbon capture.
To your question as to whether this is aligned with what we're seeing across the country, it depends a little bit on the province. There are certainly issues with the strength of industrial carbon pricing across Canada, including in the federal output-based pricing system. The upcoming federal review of both the federal output-based pricing system and then the equivalency agreements with the provinces in 2026 will be quite critical to ensuring that those systems can be adjusted, can be made more stringent and can get heavy industry on track with our 2030 emissions reduction targets and beyond, and really begin to see significant investments in heavy industry decarbonization.