Saskatchewan Premier Scott Moe has indicated that his province is willing to engage in discussions with the federal government regarding the implementation of an industrial carbon tax, with the goal of finding a mutually agreeable approach. Speaking to the National Post on Tuesday, Moe stated, "We're open to the discussion about finding a place where that would work for the industries that are employing people here." He clarified that while Saskatchewan is not entirely open to adopting the tax outright, the province is eager to explore a workable solution with federal authorities.
Context of the Announcement
Moe's comments follow a recent agreement between Prime Minister Mark Carney and Alberta Premier Danielle Smith. That deal commits Alberta's United Conservative Party government to increase its industrial carbon tax to an effective rate of $130 per tonne by 2040, up from the current $95 per tonne, which Smith had frozen the previous year. In contrast, Moe's Saskatchewan Party government paused its industrial carbon tax last year, making it the first jurisdiction in Canada to be "carbon tax free." Moe affirmed that this pause will remain in effect "until we can potentially find a path to move forward."
High-Level Discussions Underway
Moe revealed that there have been "high-level discussions" with the federal government, though he could not provide a timeline for when these talks might conclude. Industrial carbon taxes are levied on heavy emitters by either provincial or federal governments, aiming to reduce emissions by incentivizing the adoption of lower-emission technologies. The federal government, under former Prime Minister Justin Trudeau, had introduced a "federal backstop" setting a minimum tax rate intended to progressively increase to $170 per tonne by 2030. In 2021, the Supreme Court of Canada upheld the federal government's jurisdiction to enforce such policies, ruling the carbon tax regime constitutional against challenges from provinces like Saskatchewan and Alberta.
Refining the Alberta Deal
When asked whether the Alberta deal would apply to other provinces, Carney responded with a simple "yes." Moe stated that his government is now focused on "refining" the Ottawa-Alberta agreement "on behalf of Saskatchewan Industries to find a workable path forward." He noted that he had spoken to Minister Tim Hodgson before the Alberta deal was announced, saying, "I've said this to Minister Hodgson and Prime Minister Carney, is once they come to agreement with Alberta, we'll work on refinements." Moe attributed his decision to step away from the industrial carbon tax to previous rates that were "not attainable by the industry" and a lack of prior negotiations.
