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The chief executive of ATCO Ltd. says she believes the energy sector can weather an increase in the carbon price, a move some business leaders have said would hurt Canada’s competitive position on the world stage.
“None of us want to have additional tax imposed on us,” Nancy Southern told reporters following her company’s annual general meeting on Wednesday.
“However, we — and especially our Canadian oil industry — have been extraordinarily innovative.”
The “energy superpower” that Canada is striving to become needs to be able to endure decades from now, Southern added.
“Imagine 2040, and we are the place in the world that knows how to do carbon capture and that is important to the world again, to actually have clean fuels … I believe that all of us in industry will find ways to make ourselves just as competitive as we have been in the past with a new carbon price.”
A memorandum of understanding signed between the Alberta and federal governments late last year calls for the effective carbon price to rise to a minimum of $130 a tonne from the current provincial headline price of $95, with credits trading for far less. The energy accord did not specify a timeline to reach that target.
Southern made her comments as the two governments close in on an agreement around how the increase is to be implemented. A source with knowledge of the discussions who was not authorized to speak publicly about them tells The Canadian Press the two governments expect to announce a 2040 target to reach the new price.
“For our company, it’s something we can prepare for and it’s not something we disagree with, having strong carbon pricing. It allows a whole different set of opportunities in the future,” she said, citing ATCO’s work on exploiting Alberta’s low-carbon hydrogen potential.
“I actually feel like with enough time, enough advance warning, we can prepare and we can still be competitive and we’ll still have a great opportunity for industrial development in this province.”
ATCO is a Calgary-based conglomerate with a diverse array of businesses including modular buildings, utilities, pipelines and defence.
Leaders in the oil and gas industry have said recently the carbon policy puts Canada at a competitive disadvantage compared to other oil exporters.
“The national dialogue on further development of the oilsands has been myopically focused on the climate agenda and climate policy, which have ignored a multitude of benefits that responsible oilsands development has brought to this country,” Jon McKenzie, chief executive at oilsands giant Cenovus Energy Inc., told analysts on a quarterly conference call last week.
“We have created a set of national policies and regulations that make resource development and investment in Canada uncompetitive with the rest of the world.”
Earlier at the meeting, the CEO of ATCO unit Canadian Utilities Ltd. told shareholders there’s been a “renaissance” for natural gas amid recent geopolitical upheaval, as the conflict in the Middle East continues to squeeze supplies out of the Persian Gulf.
“One of the results of the heightened global concern for energy security is that we are seeing a change in attitudes toward conventional energy,” Bob Myles said.
“In addition to being positive for our natural gas storage business, it’s also good for our gas-fired generation, and we are actively seeking opportunities to grow our generation portfolio.”
This report by The Canadian Press was first published May 13, 2026.
Companies in this story: (TSX:ACO.X) (TSX:CU)
Lauren Krugel, The Canadian Press
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