Municipalities will benefit from Alberta's carbon tax, according to Premier Rachel Notley. She says they are encouraged to invest green infrastructure and transportation.

"Generally speaking, I think that without question municipalities will be net beneficiaries of the climate change levy. Because there are opportunities both for significant efficiency investments in terms of infrastructure and municipal buildings and also in terms of green infrastructure and transportation."

She says the tax will be a chance for municipalities to innovate at an even greater pace.

"I think that in fact what this will do is be something that will really allow municipalities to move forward (on) a much quicker basis with respect to greening opportunities."

Notley says municipalities have been leading on the issue of efficiency for many years.

"Municipalities have already been leading on this issue in Alberta for many years in the absence of the provincial government really taking a lead on it. So there's lots of examples already where they're well positioned to continue good work and move forward at an even greater pace. So I think that over all the response I've heard back is that they see the opportunities more than the downside."

Notley says there may be individual areas with worries, but over all municipalities will benefit.