Smith made the announcement during a news conference on the sidelines of the World Petroleum Congress in Calgary.
Alberta is Canada's main producer of crude oil and natural gas, and its highest carbon-emitting province.
A number of the country's largest energy producers have pinpointed CCS as key to cutting emissions without scaling back oil and gas output, but are reluctant to invest in the costly technology without public funding and have been awaiting details of the Alberta incentives.
The federal government in Ottawa announced a separate CCS tax credit last year, but the Pathways Alliance, a group of Canada's six biggest oil sands producers including Suncor Energy (SU.TO) and Cenovus Energy (CVE.TO), has said more government support is needed.
COP 28 runs from Nov. 30 until Dec. 12.
