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OTTAWA — At least one of the many points of friction between Alberta and Ottawa could soon be abated as the federal government prepares to announce an agreement with the province that will allow Premier Jason Kenney to proceed with his own version of an industrial carbon tax. This means the Trudeau government would not force its own tax on heavy emitters in the province against Alberta’s wishes.

However, the Trudeau government is still set to force its federal carbon tax for consumers on Albertans in January, which the Kenney government is challenging before the courts. One of the Kenney government’s first moves after being elected earlier this year was to cancel the provincial carbon tax imposed by the province’s former NDP government.

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While officials with Environment Canada would not confirm any agreement over the heavy-emitter tax, a federal source close to the negotiations who was not authorized to speak publicly confirmed that federal Environment Minister Jonathan Wilkinson is in the process of working with Minister of Intergovernmental Affairs Chrystia Freeland on an official communication around Alberta’s proposal. As of Thursday afternoon the details of any potential equivalency agreement had not yet been released.