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ARTICLE · 15 MAY 2026

Implementation Of The Canada-Alberta MOU: Key Takeaways For Carbon Markets In Alberta

Blake, Cassels & Graydon LLP
Blake, Cassels & Graydon LLP
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Canada and Alberta have reached a landmark Implementation Agreement that fundamentally reshapes carbon pricing policy through 2040, introducing price floors, contracts for difference, and revised compliance pathways.

CanadaEnvironment
Nicole Bakker
Nicole Bakker
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On May 15, 2026, the governments of Canada and Alberta announced an Implementation Agreement to address several aspects of the November 2025 Memorandum of Understanding (MOU) on energy collaboration. In addition to commitments regarding a west coast oil pipeline and electricity grid growth, the Implementation Agreement codifies forthcoming changes to carbon pricing in Alberta and at the federal level. 

Here are five key takeaways for how the Implementation Agreement will impact carbon markets.

1. Long-term Agreement on the “Headline Price” for Carbon

The legislated Headline Price for carbon under Alberta’s Technology Innovation and Emissions Reduction (TIER) Regulation has been frozen at C$95 per tonne of carbon dioxide equivalent since May 2025, a departure from the annual C$15 increases prescribed by the federal Greenhouse Gas Pollution Pricing Act (GGPPA). In a significant reduction from the prior GGPPA trajectory (which would reach C$170 in 2030), the Implementation Agreement

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