Alberta will maintain a $30-per-tonne carbon tax on large industrial facilities to align the new government’s plan with the federal climate law and stave off possible intervention from Ottawa.

The industrial carbon tax is the centerpiece of Premier Jason Kenney’s climate strategy and, on Jan 1, 2020, replaces a similar system introduced by his New Democratic predecessor. The tax could increase in future years to keep pace with the federal government’s climate plan for industry.

Alberta’s United Conservative Party government, however, is keeping up its fight against a federal carbon tax on consumers that will be imposed in January on the province, arguing that the tax is unconstitutional.

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