The Saskatchewan government announced in a release on 27 March 2025 that it will pause the industrial carbon tax rate under its Output-Based Performance Standards (OBPS) Program. This decision will provide immediate financial relief to families, farms, businesses and industry. The carbon tax rate rider will be removed from all SaskPower bills, saving hundreds of dollars a year for Saskatchewan families and businesses.

Effective 1 April 2025, Saskatchewan will become the first province in Canada to eliminate the carbon tax.

“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 CAD 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.”

This follows the province’s earlier decision to scrap the carbon tax on home heating, reportedly saving households about CAD 400 annually.

Earlier, Canadian Prime Minister Mark Carney announced the abolition of the consumer carbon tax, which was set to take effect on 1 April 2025.