The governments of Canada and Alberta have agreed to establish a carbon pricing system and agreed on a start date for a new oil pipeline that will be used to export energy to Asian markets, Prime Minister Mark Carney and Alberta Premier Danielle Smith said.
The agreements are part of a broader energy memorandum of understanding signed by Smith and Carney in November.
Under the new agreement, Alberta will agree to increase its headline industrial carbon price to $140 per tonne by 2040. Currently, Alberta’s headline industrial carbon price is $95 per tonne.
The headline carbon price will increase to $100 per tonne next year, $115 in 2030, $118 in 2031, $121 in 2032, $124 in 2033, $127 in 2034 and $130 in 2035.
Thereafter, it will increase 1.5 per cent every year to $140 by 2040.
While the headline price is what governments set, this is different from an “effective” carbon price. Polluters can buy carbon credits from low-emitters and use them to offset the amount they owe to the government.
Alberta’s effective industrial carbon price is expected to be $130 by 2030.
This will be significantly lower than the $170 per tonne carbon price target for 2030, that the federal government set in 2023 for all provinces and territory.
British Columbia Premier David Eby has voiced concern about the increase, saying it 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 earlier this week.
The Canadian Climate Institute has argued that Alberta has introduced measures to flood the carbon market with carbon credits, which the institute says would reduce the price for the credits that polluters have to pay.
Under the memorandum of understanding, Alberta will agree to set a minimum floor price for Technology Innovation and Emissions Reduction (TIER) credits.
The federal government said this was an “insurance policy” that would protect against an oversupply of cheap carbon credits in the carbon market.
Alberta will also be exempt from Canada’s Clean Electricity Regulations under the memorandum’s terms. The suspension of the regulations in the province is not contingent on the pipeline being approved.
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The regulations, which are to come into effect in 2035, would set limits on emissions from power generation using fossil fuels. Alberta has long criticized the regulations, as its grid is predominantly powered by natural gas.
The memorandum says Alberta will aim to “achieve net-zero emissions by 2050,” which the province said it will do by working on a new industrial carbon pricing agreement with the federal government.
Also in the memorandum are “multiple ambitious clean energy projects,” Carney’s office said, adding that Alberta’s industrial carbon pricing strategy will be aimed at reducing methane emissions by 75 per cent over the next decade.
Smith said Friday’s deal is around an industrial carbon price, which is different from the consumer carbon price.
“This is not a retail carbon tax. You will not see this on your diesel or gasoline or any of your fill-up bills. You will not see it on your home heating bill,” she said.
B.C. Premier David Eby said it was time for Canada as a country to “stop rewarding bad behaviour.”
“It cannot be the case that the projects that get prioritized in Canada are those where a Premier threatens to leave the country,” Eby said.
NDP Leader Avi Lewis said the deal marked “the Carney government’s official surrender to the oil and gas lobby.”
“By gutting carbon pricing to the point of irrelevance, it has dismantled the last federal climate measure standing. We now have a federal government that no longer even pretends to rein in big corporate polluters,” he said.
Conservative Leader Pierre Poilievre said while he supports the construction of a pipeline, he does not support the hiking of the industrial carbon price.
“Conservatives want a pipeline without a carbon tax, not a carbon tax without a pipeline,” Poilievre said.
“I want to recognize the hard work that Premier Smith is putting in to fight for the good people of Alberta. After 11 years of Liberal anti-resource development policies, she is working to minimize the damage federal policies are doing to her province,” he added.
Friday’s carbon pricing deal puts Canada’s commitment to reach net zero emissions by 2050 “well out of reach,” said Rick Smith, president of the Canadian Climate Institute.
“Alberta is home to the biggest carbon market in the country, covering roughly a quarter of all national emissions. While the changes to the province’s industrial carbon market may improve on the status quo there, this is the lowest of bars,” he said.
“Ultimately, 2040 is too late to reach a market carbon credit price of $130 a tonne in Alberta,” he added.
Analysis from the Canadian Climate Institute shows that the current industrial carbon pricing system costs the oil sands less than 10 cents a barrel as of 2026 and will cost less than 50 cents a barrel by 2030.
The Canadian Chamber of Commerce said the deal was “historic” and would provide “long-term certainty for industry.” However, Candace Laing, the chamber’s president and CEO added that Canada must now turn its attention to the “broader competitiveness” of its economy.”
“That means advancing one-project one-review, reducing red tape, pursuing regulatory and tax reform, and getting businesses focused less on paperwork and more on growing, investing and competing on the world stage,” Laing said.
Pipeline deal
The federal government and Alberta also agreed on a start date for construction of an oil pipeline from Alberta to Canada’s West Coast, supplying oil to Asian markets.
The pipeline will be built privately and finding a private sector proponent for the project is the “responsibility of the province of Alberta,” Carney said.
“The proposed West Coast oil pipeline would transport more than one million barrels of oil per day. This landmark agreement builds on the collaboration between the federal and provincial governments Following the signing of the Alberta Canada Energy Agreement, which was signed in November of 2025,” Smith said.
The pipeline is the flagship proposal of the agreement.
“The Alberta and Canadian governments have agreed on a pathway to the construction of a new oil pipeline to Asian markets commencing as early as Sept. 1, 2027,” the Alberta government said in a statement.
If Alberta is able to submit a proposal by Canada Day this year, the federal government will submit the proposal to the Major Projects Office, with an aim to have it designated a “project of national interest” for approval under the Building Canada Act by Oct. 1.
Under section 35 of the Constitution Act, the federal government would have a duty to consult with Indigenous group before a project such as this could be approved.
If the project receives that designation by Oct. 1, construction is expected to begin by Sept. 1, 2027.
The memorandum doesn’t say what route the pipeline will take but says Alberta is expected to submit a proposal for the pipeline to the federal government on or before July 1, 2026.
In addition to the pipeline, Alberta will also be exempt from Canada’s Clean Electricity Regulations under the memorandum terms. The suspension of the regulations in the province is not contingent on the pipeline being approved.
It’s so funny watching Daniel Smith bending over for Carney with a big fake smile on her face. These privileged white Conservatives in Alberta and BC are all the same. They puff out their chests and talk talk talk and act all tough but when sh1t gets real they wag their little tails and act friendly. Too funny
The only acceptable carbon pricing is ZERO
WHAT A JOKE !!!
This will all go nowhere.
Didn’t PM Shoepolish state there was no “business case” to export Oil&Gas to international markets?
What an affirmation that the Trudeau regime was a total failure from 2015-2025
Meanwhile Lard Ford has nothing to show for except pouring out Crown Royal in a temper tantrum.
Awesome job Danielle Smith! Hardest working Premier in Canada!
Carbon pricing will put an end to all of it. Still have to pay out the indians or shut them up somehow. Smith is a separatist fool just as much as Carney is! Both fascist to the core!
Smith a great Premier. Carney is totally bootlicking Alberta now as he has got basically nothing done a yesr into his mandate.
Three reasons this timeline is fiction before a single shovel enters the ground.
First, the pipe. Large diameter pipeline pipe 36 to 42 inch for a project moving a million barrels a day, runs 18 to 24 month manufacturing lead times minimum, from order to delivery. You cannot order pipe without a confirmed route. You cannot confirm a route without regulatory approval. You cannot get approval without Indigenous consultation. The proposal hasn’t even been submitted yet, Alberta has until July 1. The pipe alone makes September 2027 physically impossible. This isn’t opinion, it’s procurement reality.
Second, the blocking architecture. Northern Gateway, Energy East, Trans Mountain, each fight built more sophisticated legal infrastructure for delay. Intervenor standing, injunctions pending consultation review, provincial environmental assessments running parallel to federal process. Every one of these tools resets the clock. BC hasn’t agreed to anything and Eby is already publicly objecting. The route goes through his province.
Third, the funding. Last time US environmental opposition was passive, shared ideology, occasional cross-border donations. The geometry has changed. A West Coast export route to Asia directly reduces US leverage over Canadian heavy crude, which currently has essentially one customer: the US refinery system. Washington now has a direct strategic interest in this pipeline not being built before the USMCA review concludes. That converts passive ideological alignment into active geopolitical funding. The money available for that purpose is orders of magnitude larger than foundation money.
The MOU gave Alberta real and immediate wins, carbon pricing concessions and electricity regulation exemptions that are unconditional. The pipeline remains contingent on gates that cannot clear in the stated timeframe. Smith got the better of this negotiation. Carney got a press conference date.
@Anon. So you think just because we don’t like Carney we are with Putin. Wake up simpleton.
I don’t trust Carney one bit. This is his attempt to quash Alberta separation. Without removing any of trudeau’s anti-pipeline bills, nothing will get built.
Canada Auto Sector is in free fall. When is Carney going to get the deal he promised us back in July 2025.
Carneys Liberals totally flip flopping on major energy policy. I guess that is an symbol that the last 10 years under Trudeau was a total flop
And the carbon pricing means our product will not be able to compete on the global stage and with every other producing country who does not subject such measures upon its industries.. making the need a moot point. Nothing like shooting ourselves in the foot while stating we are preparing to face off in a global race.. Canada takes the self defeatist approach that will only enrich Carneys interests and co.
How’s DaniQ’s expensive referendum going ? Her recalls? Her notwithstanding clauses?
Why does she need her own judges now?
Tony Fuda is Putin’s troll moron.
Is PP still in Detroit? Where has he been?
Carney desperately trying to get a win as after a year he has accomplished very little, just like his mentor Trudeau.
Carney just poured a bucket of gasoline on dani q mob’s separatist fire. Dani got big probs coming down the pipe!!
Wearing out those knee pads Danielle …
good ol Danielle shes git the chops ill give her that. but whoever saud its never enough is right. we’re gonna vote this fall im voting ti leave. its nit sbout money. gooo carney
Hey Anonymous,
With the increased wildfires caused by climate change we’ll all have to hold our breath, because it’s going to be even harder to breath.
Nothing will appease Albertabamans’ bottomless sense of grievance, terminally inflamed in no small part by Her Nibs herself. They will separate. No new pipeline will ever be built for them through BC.
I hope a pipeline will be built but there are so many pre-conditions involved that we should not hold our collective breaths. We would end up being quite blue in the face. If pigs had wings, they’d be pigeons, and we’d always be carrying umbrellas in case one of the pig-pigeons dropped a load on our heads. 🤣
What a stab in the back!!!!
The Fed’s will now handcuff us to the dirtiest, most energy intensive and logistically inappropriate source of energy from BITUMEN??
FOR CHINA??? This is another example of our leaders shepherding us into monopolized, privatized systems that do NOTHING to benefit the 35 million Canadians Carney pretends to work for….while in reality this benefits a tiny group of retardely wealthy individuals – at the expense of the rest.
NO CONFIDENCE
CARNEY IS NO IMPROVEMENT OVER TRUDEAU…
SAME CORRUPT TWO FACED BACKSTABBING LIBERALS…
DIFFERENT DAY.
I AM ASHAMED OF THE LEADERSHIP OF THIS NATION.
WE ARE MANAGED BY PARASITES
The powers that be seem to be giving the message that as long as the oil is not burned in Canada it is ok to produce and send overseas. The fact of the matter is that it doesn’t matter where on the globe it is burned as the green house gases that are emitted spread out within the entire atmosphere, and combine to contribute to global warming. The climate crisis is very real and mainly caused by the combustion of fossil fuels. If we keep moving in this direction, we will destroy our civilization!
Do conservatives realize they need air and water too? Or just lifted trucks , convoys , church and hockey?
MACO Carney. This project won’t happen
Eby supported UNDRIP and now FNs staking claim to private property that isn’t theirs. In the end, FNs should be told what to do as they were conquered long ago.
build the pipeline through WA. skirt B.C and let them suffer for the lost dollars for the sake of climate.
British Columbia Premier David Eby the environmental should start a nudest colony for his environmental folks and get out of politics and B.C
Another fyi…blame Eby…most the street people are Albertans.
carbon taxes is a liberal scam
The should be No carbon price increase until pipeline is operational. We all no carney is not truthful.
Fyi…I’m not the one mentioning Eby and drugs on an article about Smith, Carney and pipelines.
@ les…Albertans are like a woman…never shut up and think they know everything.
@BC Resident Are you really this stupid?
B.C. Premier David Eby said it was time for Canada as a country to “stop rewarding bad behaviour.”
Coming from a guy responsible for countless OD deaths.
Don’t hold your breath, folks. The LPC really screwed up the TMX, so they’re going to have issues finding a builder.
Good. And if Ebey and the FN get in the way, move it or lose it
Carney is sucking and blowing at the same time. He has zero credibility.
Well Eby maybe you should crack the whip at your FN Co Government and get the pipeline pushed thru. THEn maybe Carney, the Liberal who is pushing an oil pipeline, will cut you some carbon tax relief.
If Mr. Carney ends up building a pipeline…why would you ( someone who was fighting to stop the U.S. from taking Canada) reward the person who is trying to SELLOUT Canada to the U.S. ?!
Thin ice of Mr.Carney flip flops…no consideration/respect for BC and FN…very risky too.
He does not have British Columbia’s or indigenous approval, so this pipeline will never happen.
Yes ! Finally !
Did she suck his coc like Trumps
The collective IQ of the Conservative voter base on here is actually lower than PP’s approval rating.
Dirtbags like Conservative voters will always blame their poor life choices on the Liberal government.
Garbage creates garbage look at Thier family trees. It’s systemic stupidity.
BC hardly got mentioned in this so-called deal Like we are not important enough to Carney and Smith. Ya just walk all over us like usual.
So.. is this officially the first thing Carney has actually done since his election? Everything so far has just been meaningless words and corruption. Maybe there is hope that he can be wrangled to actually help Canadians?
I’m probably being too optimistic
A deal with the devil, the liberals will figure out a way to back stab Alberta once again!
Carney can promise whatever he wants
He knows damn well that FNs, environmental activists and activist judges will keep this from ever happening
For Canada to compete against others in the world. We should not be imposing carbon taxes and making things for expensive. The only people that benefit from Carbon taxes is Carney and his cronies as they have more money to waste on zero value added pet projects.
Our federal Liberals continue to relabel things, yet continue to do the same old same old.
They truly believe Canadians are stupid.
Alot more blather. I will believe when something gets built.
As far as the electricity exemption, that is a load. What do you think $130 a tonne carbon tax means.
I’ll make you a deal Alberta…MY boot..YOUR ass !
Liberals think press conferences and announcements is action. The execution and completion of the work is another matter Carney is now just like Trudeau and building a Potemkin Village to fool the electorate.
Is Danielle getting sucked in by a chronic liar? She would be a fool to sign on to any carbon tax increase without a rock solid pipeline commitment. Memorandums from this snake of a banker mean absolutely nothing.
Carney is a total banker. He has no clue on how to get real work done. Paperwork doesn’t count.
Too bad alberta can’t build a pipeline out of all their tears, they’d be able to fill it full-time
When ground get actual broken for this that will be the first real milestone. Till that Carney is just dangling a carrot and buying time as after a year as PM he has got nothing accomplished.
Just more word salad from the LPC. Expect nothing from them, and we won’t be disappointed. Why does she keep believing anything he says?
Of course Smith bends over for Carney at the drop of a hat when it comes to increasing productivity in the energy sector. Further proof that Conservatives are nothing more than spineless clowns. Especially the ones in Alberta
…still no private player to pony up the BILLIONS…so nothing…and smith will still whine…
In 2 years time nothing will be built. But Carney will promise for “next time” He can’t deliver as shown by his false promises to secure a trade deal with the USA by Aug 1.
The agreement is only as good as toilet paper until Carney rips up the UNDRIP agreement
“an implementation agreement to strengthen energy collaboration and build a stronger, more competitive, and more sustainable economy”
wow more word salad from the do nothing Carney Liberals.
here’s some tips on building things, since Carney is apparently unfamiliar:
1) pick up a shovel
2) stick the sharp end in the ground
3) remove dirt
4) repeat until finished
There should be no additional taxes. Just more theft by Carney
So, will any of this lower prices of gas and food for the rest of us? Or is this just another MOU to smooth ruffled panty lines and quantify dirty knees?