Under new changes announced Tuesday, companies can avoid the province’s carbon levy if they invest in emissions-reduction technologies. According to the release, the new rules also give smaller facilities relief from paying into the province’s carbon market—called the Technology Innovation and Emissions Reduction system, or TIER—for the remainder of 2025. (The Logic)

Talking point: Alberta’s TIER program regulates about a quarter of Canada’s emissions, and such changes can have a large influence over how companies allocate capital. Tuesday’s decision creates an incentive for heavy-emitting companies to invest in technologies like carbon capture and storage. Alberta has been looking to rapidly ramp up its electricity capacity to power AI data centres, and oilsands producers and other energy firms are contemplating investments in large-scale carbon sequestration capacity. The Canadian Climate Institute warned that the changes would only exacerbate the long-standing problem of oversupply in Alberta’s carbon market.