Released on March 27, 2025
Effective April 1, Saskatchewan will be the first province in Canada to be carbon tax free.
The Government of Saskatchewan will pause the industrial carbon tax rate under its Output-Based Performance Standards (OBPS) Program, a decision that will provide immediate financial relief to families, farms, businesses and industry. The carbon tax rate rider will be removed from all SaskPower bills. This will save hundreds of dollars a year for Saskatchewan families and businesses.
"Today, we are making Saskatchewan the first carbon tax free province in Canada," Premier Scott Moe said. "In taking the lead on the removal of this harmful tax, we hope all federal leaders will support our position and allow the provinces to regulate in this area without imposing the federal backstop."
"Saskatchewan led on the removal of the carbon tax on home heating last year, saving families in our province over $400 on their household SaskEnergy bills," Minister of Crown Investments Corporation Jeremy Harrison said. "Now we are leading again as the first province in Canada to remove the industrial carbon tax on electricity generation, delivering further savings for Saskatchewan families, businesses and industries on their SaskPower bills."
In the face of the ongoing tariff threats and the rising cost of living, Saskatchewan is taking decisive steps to protect Saskatchewan businesses and residents from economic uncertainty and unnecessary taxation.
"Now more than ever, the world needs our clean and sustainable, food, fuel and fertilizer" Environment Minister Travis Keisig said. "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 and has the food, fuel, fertilizer and critical minerals the world needs. By eliminating industrial carbon costs which are often passed directly on to consumers – the province is acting to protect affordability and economic competitiveness.
This decision will foster an economic environment where industries can feel confident to make investments, increase production, and protect the jobs and families they support.
While the industrial carbon tax rate is paused, the Government of Saskatchewan will continue to engage with industry on the future of Saskatchewan's OBPS system.
-30-
For more information, contact:
