Alberta’s Carbon Levy is being put in place by the NDP government to reduce greenhouse gas emissions. The levy will be included in the consumer price of all fuels that emit greenhouse gases, including diesel, gasoline, natural gas, and propane. It will also affect electricity costs, but unlike natural gas, you will not see it on your hotel’s power bill. It will be rolled into the price of power.

How the Carbon Levy Will Affect Alberta Hotels

After payroll, utility costs are typically one of a property’s largest operating expenses. The NDP’s Carbon Levy of $20 per tonne starting January 1, 2017 and rising to $30 per tonne in 2018 will dramatically increase these direct costs.

The graphs show that for 2017, on average, members can expect to incur an additional $193 per room in carbon levy for direct energy. This amounts to approximately $20,000 per year for a 100-room hotel. These numbers are based on actual consumption data from the AHLA’s electrical energy and natural gas programs. They are estimated costs and are subject to variation based on your property’s specific consumption.

These numbers will rise again in 2018 as the Carbon Levy increases to $30 per tonne.

Because the Carbon Levy will be included in the price of transportation and heating fuels, hotels will see increased costs associated with the delivery of supplies, food & beverage products, airport shuttle service (at airport properties), and more.

What the AHLA Is Doing

The AHLA will help our members mitigate the effects of the carbon levy on their businesses. In early October, we submitted a proposal to the Government of Alberta’s Energy Efficiency Advisory Panel for an industry sector program that would help AHLA members access funds to support energy efficiency upgrades at their properties.

“This Carbon Levy will affect hotels across the province. The AHLA will be developing programs, partnerships, and resources to help our members reduce their carbon footprint and reduce the impact of the levy on their bottom line.”

– AHLA President & CEO Dave Kaiser

How You Can Manage Carbon Levy Costs at Your Hotel

There is no way to avoid paying the cost of the Carbon Tax, but the AHLA has 4 ways to help manage the impacts of this new tax at your property:

EcoStay offers a number of ways to help manage utility costs and usage and offset your carbon footprint. EcoStay’s funding model helps you reduce operating costs through energy efficiency upgrades, waste reduction, and sustainable product purchasing. To learn more, contact or call 1.877.430.3007.

Natural Gas Program
The AHLA’s Natural Gas Program through Gas Alberta Energy (GAE) allows you to buy natural gas at the best possible prices by leveraging buying opportunities. GAE customizes each member’s contract to meet their consumption profile, risk tolerance and cost management needs. To learn more, please contact Ashley Hargrave at 1.403.561.6258.

Power Program
The AHLA’s Power Program can help you reduce your property’s exposure to electricity market volatility by delivering competitive pricing. If you are interested in the AHLA power program, please contact the AHLA at

Green Key
Green Key Global offers members opportunities to manage their carbon footprints by leveraging activities that support their green, sustainable initiatives, and by assessing their environmental performance in five key operational areas:

  • Corporate Environmental Management
  • Housekeeping
  • Food & Beverage Operations
  • Conference & Meeting Facilities
  • Engineering

To sign up, register here, or contact