Prime Minister Mark Carney and Alberta Premier Danielle Smith have reached a significant agreement on a new bitumen pipeline to the B.C. coast. The federal government views this as an opportunity to boost Alberta’s energy sector, diversify Canada’s economy, and reduce reliance on the U.S.
This deal marks the end of a decade-long feud between Alberta and Ottawa. It includes Alberta’s commitment to implement a higher industrial carbon levy on emissions and support the development of a carbon-capture project to reduce greenhouse gases from the oilpatch.
During the signing ceremony in Calgary, Carney emphasized that this agreement will strengthen Canada, making it more independent, resilient, and sustainable. Smith also expressed her optimism, calling it a great day for Albertans.
However, Liberal MP Steven Guilbeault resigned from Carney’s cabinet due to concerns about the government’s climate commitments. The memorandum of understanding (MOU) outlines plans for a privately financed pipeline to transport a million barrels of oil daily to the Pacific coast for export to Asian markets.
The agreement designates the pipeline as a project of national interest, potentially exempting it from certain federal laws. Indigenous co-ownership is also part of the plan. Alberta and Ottawa aim to expedite the pipeline’s review by July 1 after consultations with Indigenous groups and B.C.
The MOU highlights collaboration between Alberta and Canada for an efficient approval process. Alberta pledges to work with B.C. to ensure the province shares economic benefits from the pipeline. The goal is to start the project by 2029.
Carney emphasized the importance of showcasing Canada’s ability to undertake major projects. He aims to boost the economy amid challenges like U.S. tariffs. Smith hailed the agreement as a new beginning for Alberta’s prosperity.
The deal faces opposition in B.C., with concerns about environmental impact and Indigenous consent. Premier Eby worries about potential project delays and political maneuvers. Coastal First Nations reject the pipeline, citing environmental risks.
In addition to the pipeline commitment, the agreement involves raising the industrial carbon price in Alberta and advancing carbon capture projects. The parties aim to reduce methane emissions from the oil patch significantly by 2035.
Environmental groups criticize the deal for prioritizing fossil fuel expansion over climate goals. Conservative Leader Poilievre questions the agreement’s impact and suggests a Conservative government would approve the pipeline immediately. Despite differing opinions, some politicians, like Calgary MP Stephanie Kusie, welcome the agreement’s progress.