Saskatchewan Becomes the First Province in Canada to Be Carbon Tax-Free
Effective April 1, Saskatchewan will be the first province in Canada to eliminate the carbon tax. The Government of Saskatchewan has decided to pause the industrial carbon tax rate under its Output-Based Performance Standards (OBPS) Program. This decision aims to provide immediate financial relief to families, farmers, businesses, and industries across the province. As part of this initiative, the carbon tax rate rider will be removed from all SaskPower bills, saving Saskatchewan families and businesses hundreds of dollars each year.
“Today, we are making Saskatchewan the first carbon tax-free province in Canada,” said Premier Scott Moe. “By leading the way in removing this harmful tax, we hope that federal leaders will support our position and allow provinces to regulate this area without imposing a federal backstop.”
Minister of Crown Investments Corporation Jeremy Harrison added, “Saskatchewan led the way in eliminating the carbon tax on home heating last year, saving families over $400 on their household SaskEnergy bills. Now we are taking the lead once again as the first province in Canada to remove the industrial carbon tax on electricity generation, providing further savings for families, businesses, and industries on their SaskPower bills.”
In light of ongoing tariff threats and rising costs of living, Saskatchewan is taking decisive steps to protect its residents and businesses from economic uncertainty and unnecessary taxation.
“Now more than ever, the world needs our clean and sustainable food, fuel, and fertilizer,” said Environment Minister Travis Keisig. “This is not the time to risk undermining our economic growth and prosperity. Pausing the industrial carbon tax will allow industries to grow and operate sustainably while maintaining our economic competitiveness during these uncertain times.”
Saskatchewan is home to some of the most sustainable products on the planet, offering the food, fuel, fertilizer, and critical minerals that the world needs. By eliminating industrial carbon costs—often passed directly to consumers—the province is working to protect affordability and economic competitiveness.
This decision will create an economic environment where industries can confidently make investments, increase production, and support the jobs and families that rely on them. While the industrial carbon tax rate is temporarily paused, the Government of Saskatchewan will continue to engage with industry stakeholders regarding the future of Saskatchewan's OBPS system.