Alberta’s current carbon abatement policies have not achieved the goals set out by the provincial
government’s climate change strategy. With the legislation expiring next year, a new policy must
be introduced to help improve Alberta’s environmental stewardship. What has recently begun to
be talked about is increasing the current 15$ penalty levy to 40$ and increasing emissions
reductions from 12% to 40%. This is a move in the right direction but if it will be enough to help
the government achieve their goals and what the impact on the industry will be is still uncertain.
By closer examining the current Alberta levy, looking at other carbon policies from around the
world and assessing any new proposal through the tax criteria’s of efficiency, administration
costs and comprehensibility and compliance costs, one can better evaluate the potential impact of
an increase to the current Alberta carbon reduction strategy.