Alberta has been a leader in pricing carbon pollution in Canada since 2007. It was the first province to put an output-based pricing system in place and had a carbon levy on fuel in place from 2017 until its repeal as of May 30, 2019.
As a result of the repeal, Alberta only now partially meets federal requirements. On June 13, 2019, the federal government announced its intent to implement the federal fuel charge in Alberta as of January 1, 2020. In addition, the federal government announced that it will monitor any proposed changes to Alberta’s large industrial emitter system, and will undertake another benchmark assessment once sufficient details about the new system for large emitters becomes available. The federal government is also open to working with Alberta to determine the most appropriate treatment of small oil and gas facilities under the carbon-pricing regime.
Starting on January 1, 2020 and increasing in stringency over time, the federal fuel charge will add a nominal cost to everyday fuels.
In Alberta, for example, in April 2020 the fuel charge on gasoline will be 6.63 cents per litre and the fuel charge for natural gas used in home heating will be 5.87 cents per cubic metre – these rates will increase over time. A complete list of fuel charge rates is available on Finance Canada’s website
The federal tax puts a price of $20 per tonne of carbon dioxide equivalent (CO2e) emissions for home heating fuels. Rates will increase on April 1 of each year as the federal government increases the carbon price by $10 per tonne a year until it reaches $50 per tonne in 2022.