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Ottawa’s pre-COVID-19 holiday surprise was an updated climate plan including a proposal to significantly hike the carbon tax in the next decade. Environmental groups described the plan as bold and brave. The federal government says a higher price on carbon will force everyone to use less energy and improve efficiency.
But in Alberta, which has an already weakened economy that relies much more than other provinces on oil and gas production and other heavy industries, the federal announcement on carbon pricing is a difficult pill to swallow. Many will view the plan to have a carbon price of $170 per tonne by 2030 as yet another hurdle to any kind of economic recovery.