Saskatchewan is open to industrial carbon tax talks with Ottawa, Moe says

Premier of Saskatchewan Scott Moe takes questions from journalists before attending a Council of the Federation meeting with Canadian premiers in Ottawa, on Wednesday, Jan. 28, 2026. THE CANADIAN PRESS/Justin Tang

Saskatchewan’s premier says his province is open to discussing the prospect of an industrial carbon tax with the federal government.

Speaking with reporters at an event on Wednesday, Premier Scott Moe proudly proclaimed Saskatchewan to be “carbon tax free.” However, on the topic of an industrial price on carbon, he noted that regulatory certainty across Canada is good for both provinces and the nation as a whole.

“Some degree of regulatory certainty across this nation is good for us as Canadians, and it’s good ultimately for our industries in the province as well,” Moe said.

“… In that same spirit of collaborating and finding a cross Canada solution that works for everyone, we’re open to that discussion, and we’ll continue with it.”

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The premier offered no timeline on the discussions or an eventual plan but elaborated on the province’s position – that the proceeds of the tax be “recycled back” to the producers making the investment into Canadian industry.

“If we can work with the federal government, find a place that works for the industry to continue to not only maintain their production but expand that production by attracting investment – if we can find that landing spot, we will,” he said.

“If we don’t, well, then we’re fine with the status quo.”

Saskatchewan paused its Output-Based Performance Standards Program in early 2025. The decision came in tandem with Ottawa’s decision to drop the consumer carbon tax.

Moe’s comments come after Alberta changed its industrial carbon tax program – allowing companies to avoid paying provincial fees for emissions by investing in emissions reduction projects of their own.

Alberta has operated an industrial carbon pricing system since 2007. The system’s current version, dubbed the Technology Innovation and Emissions Reduction, has been in place since 2020.

With files from The Canadian Press