Government needs to strike a balance between achieving its emission reduction goals and preserving the competitiveness of the economy using pragmatic, flexible and innovative solutions.


Since Alberta’s economy is particularly sensitive, there is concern that unduly aggressive actions taken to reduce emissions in Alberta may not lead to real emissions reductions. Instead, investment may shift to other jurisdictions without stringent GHG policies, negatively affecting Alberta’s economy and not ultimately impacting global greenhouse gas emissions due to carbon leakage. Ensuring that our economy and small businesses remain vibrant and competitive is imperative as small businesses make up 87% of all businesses in the province.205 Government needs to strike a balance between achieving its emissions goals and preserving the competitiveness of a critical part of the economy. 

Our Recommendations

  1. Ensure carbon policies maintain competitiveness with like jurisdictions in Canada and the United States that have similar investment interests. 
  2. Communicate the goals and the timelines of climate policies and amendments or modification plans if the goals and timelines are not met. 
  3. Ensure there is cost neutrality within the business sector and that revenue from carbon pricing is available and cycled back to the business community through other tax incentives and capital cost allowances. 
  4. Provide pathways for market driven solutions through tax incentives to all emerging technologies for carbon reductions to allow consumers and businesses the freedom to drive the choices towards preferred lower carbon options. 
  5. Only implement a levy on natural gas when a less carbon intensive and cost effective solution is available. 
  6. Implement options to measure net carbon impact and only apply levies to the net amount, taking into account the measures used to mitigate the total carbon footprint, including absorption of carbon dioxide and technologies such as green carbon capture. 
  7. Allocate a portion of levies collected for the purpose of creating and providing educational programming tools related to natural resource development including both energy and agriculture. 
  8. Measure both the direct and indirect cost impacts of climate policies. 
Download The Policy Brief



If you have any questions, contact Dana Severson at or (780) 425-4180 ext. 2.