Prime Minister Mark Carney and Alberta Premier Danielle Smith are expected to announce an agreement on industrial carbon pricing in Alberta on Friday, Global News has learned, a key component for a potential new oil pipeline to the British Columbia coast.
A source with direct knowledge of the negotiations says the federal and provincial governments are expected to increase Alberta’s effective industrial carbon pricing from $95 this year to $100 per tonne in 2027, rising to $130 per tonne by 2040. Global News is not identifying the source as they were not authorized to speak publicly.
British Columbia Premier David Eby is concerned the increase — which would sit well below the current federally mandated level of $170 per tonne by 2030 — gives Alberta an unfair advantage.
“We will not be in a competitive position if Alberta has a special federal carbon price the rest of us don’t have access to in the rest of Canada,” Eby said.
The expected announcement on Friday, which was confirmed by two sources who did not give further details, comes after Smith and Carney met in Ottawa last week.
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After the meeting, the premier told Global News she was optimistic about a potential pipeline being built.
“I hope that we’ll be able to announce that we’ve come to an agreement very soon, and that will start paving the way to show Albertans that Canada can work,” Smith said Friday.
Ottawa and Alberta have agreed on many elements of the memorandum of understanding announced last fall, which promises to build an oil pipeline to the northwest coast of B.C. However, several key sticking points were not resolved by the April 1 deadline.
A trilateral agreement involving Ottawa, Alberta and the energy companies behind the Pathways carbon capture and storage project is also still being negotiated.
Carney has repeatedly referred to the MOU and the proposed pipeline as a “grand bargain,” aimed at increasing oil production while reducing emissions through a carbon capture and storage project that would permanently sequester carbon.
“For a pipeline to be built, the industrial carbon price has to be on this path to increase in Alberta. Secondly, there has to be the Pathways project,” Carney told Global News in December.
There is also still no private proponent for the potential pipeline to the B.C. coast, nor an identified route.
Smith said in an interview that aired Sunday on The West Block that a government pipeline submission to the federal Major Projects Office would include a breakdown of various proposed routes.
She said five possible ports have been identified, including in Metro Vancouver.
—With files from Global’s Sean Boynton
The only pipe in B.C. is the one the NDP smokes meth through. Good luck getting one that moves oil
Carbon pricing is a scam. Meant to make life
Miserable for Canadians
Carney promised to get rid of Carbon tax when he was running… Now it has to be in place before he can work on the pipeline he also promised during the election.
Is he deliberately trying to piss off Alberta? Smith seems to be helping too…
BTW: Alberta never asked for a Vancouver port. We asked for Prince Rupert. – want us to stay, give us what you promised!!
@ anonymous…you are correct. EVERYBODY is broke…city, provincial, federal, and the planet. No matter who’s in charge. 40/ 50 yrs in the making…
Get a free pipeline … beg for another. Notice Ontario isn’t getting free auto plants …. BC doesn’t get free sawmills etc. Conservatives would build a bridge to nowhere if you let them.
I can see the feds building this pipeline since no private entity wants to invest in Westerrn canada.
Seeing is believing. Until we are cutting the ribbon i dont believe a word about this.
@Kryta O
TMX is now running at 90% capacity or more.
Sure hope PM Carney delays finalizing anything till AFTER the next Provincial Election!
Their not even using the current Bichum pipeline they have in Vancouver at 50%. Why build another? Smarter idea build refineries. Sell to Canadians then worry about exporting to other countries.
blah, blah, blah, more bloody talk from the liberals
Never should’ve agreed to the carbon tax hike that makes everything more expensive. On Friday, expect more liberal word salad. Expect nothing from the liberals, and we’ll never be disappointed. Alberta, strong & free!
The update will be that there is no update. Carney will flip flop like a fish and talk in riddles.
Carney will sign say loook at
Me. It will cost some
Carbon tax bullschitsu but in the end the natives will block it and Carney can say look and me I tried I’m a hero when he still is very anticanadian.
I’ll believe when I see it
I heard Carney is now Elbows Down with the USA and calling for closer integration. How many times will he reverse course and flip flop on major policy
Great news! Of course the Conservatives and Poilievre will find fault with this, instead of being on board with Team Canada.
@ f media: I’d ban your wilful ignorance too
The Russian trolls and rednecks here will still gripe at our PM of course.
350,000 dead russians in Ukraine now.
I’ll tell you the answer now, NOT A F ING CHANCE.
The pipeline still won’t be approved.
Of course my comment was deleted. It contained truths about how two politicians are speaking for all of Canada, on Canada’s resources! Global wont let me call it by name. Its the same tactics a certain German somebody used before he attacked his own country. Global, CBC, CTV all of them are complicit.
Well, well, well. The only time the Liberals talk about pipelines is when they need money. The country must be in pretty bad shape.