Prime Minister Mark Carney and Alberta Premier Danielle Smith have reached a mutual agreement on the construction of a new bitumen pipeline to the B.C. coast. This significant development is being touted by the federal government as an opportunity to enhance Alberta’s energy sector, diversify Canada’s economy, and reduce reliance on the United States.
The agreement marks the end of a decade-long discord between Alberta and Ottawa. It includes Alberta’s commitment to implement a higher industrial carbon levy on emissions and support the development of a major carbon-capture project aimed at reducing greenhouse gas emissions tied to the oil industry.
During the signing ceremony in Calgary, Carney emphasized that the deal will strengthen Canada, making it more self-sufficient, resilient, and sustainable. Smith echoed the sentiment, calling it a momentous day for Albertans.
However, Liberal MP Steven Guilbeault resigned from Carney’s cabinet, citing concerns about the government’s perceived backtracking on climate commitments. Despite his resignation, Guilbeault expressed his intention to remain as a Liberal MP.
Central to the memorandum of understanding (MOU) is Ottawa’s commitment to facilitate the construction of a privately financed pipeline capable of transporting one million barrels of oil per day from Alberta to a Pacific coast export terminal. The project aims to enable Indigenous co-ownership and has been designated as a “national interest” under the Building Canada Act.
The MOU outlines a streamlined approval process for the pipeline, contingent on Indigenous consultations and negotiations with British Columbia. Additionally, Alberta has pledged to collaborate with B.C. to ensure the province benefits economically from the proposed pipeline.
Both Carney and Smith emphasized the importance of embarking on this controversial pipeline project to demonstrate Canada’s capacity for large-scale development, particularly amidst economic challenges such as U.S. tariffs. They underscored the need to bolster economic growth and take calculated risks to advance the country’s future.
While the agreement received applause in Alberta, it faced opposition in British Columbia. Premier David Eby expressed concerns about potential environmental impacts and Indigenous opposition to the project. Coastal First Nations opposed the pipeline, citing environmental risks and asserting their constitutional authority over the region.
Despite criticisms from environmental groups and political adversaries, the agreement between Ottawa and Alberta also includes commitments to increase the industrial carbon price, invest in carbon capture technologies, and reduce methane emissions associated with the oil industry. The parties affirm their dedication to achieving net-zero emissions by 2050 while promoting energy sector growth.
The MOU has sparked mixed reactions, with environmental organizations condemning it as detrimental to climate goals and favoring the oil industry. Conservative Leader Pierre Poilievre criticized the agreement, while some Conservative MPs expressed support for the premier’s contentment with the deal.
