Federal carbon tax now in effect in Alberta

Alberta has become one of five provinces in Canada to have imposed carbon taxes on home heating and other fuels as of Jan. 1. The federal government issued carbon taxes to provinces that don’t have provincial carbon reduction programs. Currently, New Brunswick, Ontario, Manitoba, Saskatchewan, and now, Alberta are on the list.
The theory behind the tax is that by increasing the cost of fossil fuels, people and businesses will switch to alternative technologies to reduce carbon emissions.
“Since so much of what Albertans use in modern-day life is delivered by diesel-powered trucks and trains, the cost of essential items such as groceries and clothing will rise as well,” explains Doug Schweitzer, Alberta’s minister of justice and solicitor general.
The Alberta government released a report Nov. 2019 that highlighted the impact of the former provincial carbon tax and the current federal carbon tax. The Economic Assessment of Climate Policy in Alberta shows that if the former Climate Leadership Plan were still in place, there would be between 10,000 and 16,000 fewer jobs, the GDP would be reduced by $2 billion in 2020, and households would face $840 in household costs per year.
“In 2019, Albertans overwhelmingly rejected carbon taxes at the ballot box – twice. We kept our commitment to scrap Alberta’s carbon tax,” said Schweitzer. “And while some pundits and politicians at home would prefer that we simply roll over and accept Ottawa’s unconstitutional imposition of carbon taxes on Albertans, we are steadfast in our commitment to stand up for our province – including with our current challenge at the Alberta Court of Appeal and supporting Saskatchewan and Ontario in their legal efforts as well.”
The Alberta government has stated that there are still efforts done to pursue innovation to combat emissions with the made-in-Alberta Technology Innovation and Emissions Reduction (TIER) plan.