Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 408

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 408
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 operate and the political environments and structures with which we interact. Please refer to the Governance and Risk Management section of our 2024 Annual MD&A and Note 12 of our unaudited interim condensed consolidated financial statements for details on our risks and how we manage them. Our risk management profile and practices have not changed materially from Dec. 31, 2024.

| M68 |     | TransAlta Corporation |

Management’s Discussion and Analysis Regulatory Updates Refer to the Policy and Legal Risks discussion in our 2024 Annual MD&A for further details that supplement the recent developments as discussed below: Canada Federal The Government of Canada has set objectives for carbon emissions reductions, including a 45 to 50 per cent national emissions reduction over 2005 levels by 2035, a net-zeroelectricity grid by 2035 and a net-zeronational economy by 2050. The government has utilized several policy tools to achieve its emissions objectives, including but not limited to, carbon pricing, emissions performance regulations, funding for industrial energy transition, and incentives for consumers. The federal requirement for a consumer carbon price was removed on April 1, 2025; however, the requirement for industrial carbon pricing remains in place. Canada’s provinces have jurisdiction over their respective electricity sectors and play an important role in setting industrial carbon pricing policy and emissions performance standards, subject to equivalency requirements with the federal government’s carbon pricing regime, pursuant to its authority to set national carbon pricing standards. Jurisdictional responsibilities between the federal and provincial governments enable both levels of government to implement policies that impact our sector. Leadership changes at either level of government can influence policy direction. A federal election occurred on April 28, 2025, resulting in a minority government for the Liberal Party of Canada. TransAlta continues to monitor policy developments related to our business, including but not limited to the Clean Electricity Regulations, Investment Tax Credits, industrial carbon pricing, as well as funding for net-zerotechnologies. Alberta During the first quarter of 2025, the Government of Alberta commenced consultation on the Technology Innovation and Emissions Reduction Regulation (TIER) in advance of the scheduled program review in 2026. The TIER program has been in place since 2007 and is expected to be maintained going forward. In the second quarter of 2025, the provincial government announced its intention to indefinitely freeze the industrial carbon price at $95 per tonne, rather than proceed with annual increases as set out in a previous Ministerial Order. This change is scheduled