The Economic Assessment of Climate Policy in Alberta highlights the effects of the now-repealed carbon tax on the province’s economy, and the potential costs of the federal government’s carbon price if it were applied in Alberta.
The report shows that if the former Climate Leadership Plan were still in place:
- Alberta would see between 10,000 and 16,000 fewer jobs.
- Alberta’s GDP would be reduced by $2 billion in 2020, and Albertans would face $840 in household costs per year.
- If the provincial carbon price increased after 2020, Alberta’s GDP would be reduced by $3.9 billion, and household costs would rise to $1,300 starting in 2030.
“The release of this report clearly demonstrates that the previous government’s plan would have further slowed economic growth and taken thousands of dollars away from Alberta families. We know that Alberta can achieve emissions reductions through a more innovative plan, but at a lower cost to job creators, and without a punitive tax on Alberta’s hard-working families. We’re pleased to have fulfilled our platform commitment to examine how the old consumer carbon tax would have punished Albertans straight in the pocketbook.”
The report will inform government’s continued work on developing a new emissions-management and climate-resilience approach that considers options beyond a carbon price on households and small businesses. More information will be available this winter.
- Government is committed to creating certainty for Alberta’s job creators while reducing emissions, which is why the Technology Innovation and Emissions Reduction (TIER) system has been developed to ensure the federal fuel charge does not negatively affect Alberta’s trade-exposed industrial sectors.
- TIER will help industries deploy pioneering, emissions-reducing technologies and solutions that respect Alberta’s unique character and keep businesses competitive for years to come.
- Alberta was one of the first provinces in the country to take action on climate change, with climate policies in place since 1999.
- The province was one of the first jurisdictions in Canada to create a comprehensive action plan to reduce greenhouse gas emissions, one of the first to require industries to report emissions, and the first to adopt regulations that require large industries to reduce emissions.