​On March 26, 2025, Saskatchewan Premier Scott Moe announced that the province will become Canada’s first fully carbon tax–free jurisdiction. This decision involves setting Saskatchewan’s industrial carbon tax rate to zero, effectively eliminating the levy on electricity generation. Premier Moe emphasized that this move aims to save families money and enhance the competitiveness of businesses, especially amid tariff threats from the United States.

Jeremy Harrison, Minister of Crown Investments Corporation, highlighted that this initiative builds upon previous efforts to reduce carbon taxes on home heating, which had already saved families over $400 on their SaskEnergy bills. By removing the industrial carbon tax on electricity generation, further savings are anticipated for Saskatchewan residents and businesses.

This action aligns with Saskatchewan’s ongoing opposition to federal carbon pricing policies. The province has previously challenged the constitutionality of the federal Greenhouse Gas Pollution Pricing Act and introduced its own climate change strategies focusing on technological solutions like carbon capture and storage.

While the federal government announced the end of the consumer carbon tax on April 1, 2025, it continues to impose an industrial carbon tax. Premier Moe expressed hope that federal leaders will support Saskatchewan’s position and allow provinces to regulate in this area without imposing federal backstops. ​The Canadian Taxpayers Federation has endorsed this move, stating that canceling the industrial carbon tax will save taxpayers money and protect jobs.