Prime Minister Mark Carney and Alberta Premier Danielle Smith have reached a preliminary agreement on a memorandum of understanding that would grant Alberta specific exemptions from federal environmental regulations and extend political support for a new oil pipeline to the British Columbia coast. Sources have disclosed to CBC News that the official announcement is expected to be made at a joint press conference in Calgary on Thursday.
The arrangement would be conditional on Alberta adopting a more stringent industrial carbon pricing system and making a substantial investment in carbon capture through the Pathways Alliance, a group of oilsands companies. Numerous insiders familiar with the plan, but not authorized to speak publicly until the memorandum is unveiled, relayed these details to CBC News.
The anticipated agreement could signal a reset in the strained relationship between the federal and provincial governments. The announcement is likely to be accompanied by a significant public relations effort, including an event featuring the Calgary Chamber of Commerce, the prime minister, the premier of Alberta, and other provincial officials.
The pact is expected to include provisions exempting Alberta from federal greenhouse gas regulations it has opposed, such as Ottawa’s net-zero clean electricity rules. These regulations would be suspended by Ottawa if Alberta commits to enhancing its industrial carbon pricing strategy.
Implementing an effective carbon pricing system on major polluters, like the oil and gas sector, is widely recognized by climate policy experts as a key measure to reduce harmful emissions. This move could render the federal government’s proposed oil and gas emissions cap unnecessary, potentially leading to its elimination.
Furthermore, the federal government’s 2025 budget outlines plans to adjust Competition Act regulations to combat companies engaging in deceptive environmental advertising, known as greenwashing. The Alberta government and industry groups have advocated for the repeal of these laws.
The memorandum is anticipated to address the necessity for Alberta to engage with the British Columbia government as it progresses with plans for an oil pipeline to the northwest coast. Previous reports by CBC News and others have hinted at the agreement’s focus on advancing an Alberta to northwest B.C. oil pipeline and securing exemptions to the ban on oil tankers in specific regions.
It is also expected that the memorandum will emphasize the importance of Indigenous ownership and equity, along with the need for collaborative discussions involving British Columbia. B.C. Premier David Eby disclosed that the prime minister informed him details of the agreement were still being finalized following their conversation on Monday morning.
Adrian Dix, B.C.’s energy and climate solutions minister, suggested that the agreement primarily revolves around a hypothetical pipeline without a confirmed route or buyers. He emphasized the preliminary nature of the MOU due to the absence of a concrete project. Dix also highlighted Premier Smith’s impending appearance at a United Conservative Party convention in Edmonton over the weekend, underscoring the timing significance for Alberta to unite politically.
During a parliamentary committee meeting on Monday, Natural Resources Minister Tim Hodgson indicated a willingness to collaborate with proponents if they secure support from First Nations and relevant jurisdictions to navigate any regulatory hurdles.
The Alberta government refrained from divulging specific details to CBC News, with a spokesperson for the premier expressing optimism about sharing further information in the near future. The agreement will also stress the importance of advancing the $16.5-billion Pathways Alliance carbon capture and storage initiative, involving the containment of greenhouse gas emissions from facilities in northern Alberta for transport to an underground storage facility near Cold Lake, Alberta.
Greenpeace Canada’s senior energy strategist, Keith Stewart, criticized the initial terms of the MOU as a “historic betrayal” of Canada’s environmental commitments and Indigenous rights, cautioning that the carbon emissions resulting from expanded oil production could overshadow any potential emission reductions.