Alberta Carbon Levy

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​What is a carbon levy?

As part of the new Climate Leadership Plan, effective January 1, 2017 the Government of Alberta will be implementing a carbon levy (putting a price on carbon) that will be included in the price on all fuels with an aim to reduce carbon emissions.

Which fuels are affected by the carbon levy?

Fuels that are subject to the carbon levy include transportation and heating fuels such as diesel, gasoline, natural gas and propane. However, there are exemptions to the carbon levy including:

  • purchases of fuel on-reserve or at other prescribed locations by eligible First Nations and individuals for personal and band use;
  • marked gasoline and diesel used by farmers in farming operations;
  • biofuels, including biomethane, biodiesel and ethanol;
  • inter-jurisdictional flights;
  • fuel sold for export;
  • industrial exemptions in cases where fuel is used in industrial processes but not combusted;
  • natural gas produced and consumed on site by conventional oil and gas producers (until Jan 1, 2023); and
  • the use of heating fuels on sites subject to the Specified Gas Emitters Regulations (SGER)/output-based allocation regime.

To qualify for exemption certificates and other evidence of exemption specific to gas emitters and production process please visit http://www.finance.alberta.ca/publications/tax_rebates/carbon-levy/CL-T-3.html.

What will the new rates look like?

​Type of Fuel ​January 1, 2017 $20/tonn​​e ​January 1, 2018 $30/tonne
​Marked farm fuels ​Exempt​​​​ ​Exempt
​Diesel ​+5.35 ¢/L ​+2.68 ¢/L​​
​Gasoline ​+4.49 ¢/L ​+2.24 ¢/L
​Natural Gas ​+1.011 $/GJ ​+0.506 $/GJ
​Propane ​+3.08 ¢/L ​+1.54 ¢/L

Source: Alberta Treasury Board and Finance​​

Where can I find more information on the carbon levy?

For more information please visit:  https://www.alberta.ca/climate-carbon-pricing.aspx​​​