Canada's carbon price to hit $130 per tonne by 2040—dividing energy leaders
Canada’s carbon pricing policy is set for a major change, with the minimum price rising to $130 per tonne by 2040. The move has drawn mixed reactions from energy leaders, some of whom see it as a chance for growth. ATCO Ltd., a Calgary-based conglomerate, has welcomed the shift, calling it an opportunity for innovation and development.
The federal and Alberta governments are preparing to announce a 2040 target for the new carbon price, increasing it from the current $95 to at least $130 per tonne. Nancy Southern, CEO of ATCO Ltd., believes the energy sector can handle the rise. While she admitted that no business wants extra taxes, she framed the policy as a push toward cleaner technology.
ATCO, which operates in utilities, pipelines, modular buildings, and defence, sees potential in carbon capture and clean fuels. Southern envisions Canada becoming a global leader in these areas by 2040. Meanwhile, Bob Myles, CEO of ATCO’s Canadian Utilities Ltd., described a 'renaissance' for natural gas. He linked this revival to growing concerns over global energy security, which has boosted demand for gas storage and generation. Not all industry leaders share the same optimism. Jon McKenzie, CEO of Cenovus Energy Inc., argued that current policies put Canada at a disadvantage in oil development. His comments highlight a divide in how energy firms view the carbon pricing changes.
The carbon price increase will take effect by 2040, with ATCO positioning itself to adapt through innovation. The policy shift aims to push Canada toward cleaner energy solutions while balancing economic concerns. How the sector responds will shape the country’s role in global energy markets.
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