On Thursday, Canadian Prime Minister Mark Carney and Alberta’s premier signed an agreement aimed at boosting energy investment by rolling back certain climate regulations. The deal includes scrapping a planned emissions cap on the oil and gas sector and relaxing clean electricity rules, in exchange for Alberta’s commitment to enhance industrial carbon pricing and support a carbon capture project.
Carney is leveraging the energy sector to mitigate economic uncertainty from U.S. tariffs and reduce dependence on the U.S. market, which absorbs 90% of Canada’s oil exports. While he has eased some environmental restrictions from former Prime Minister Justin Trudeau, he maintains a goal of achieving net-zero carbon emissions by 2050.
The agreement also addresses the potential construction of a new crude oil pipeline to British Columbia’s northwest coast, although no private companies have yet committed to the project. Alberta’s government insists that significant federal legislative changes, including lifting the emissions cap and ending the oil tanker ban, are necessary for pipeline proposals to proceed.
British Columbia Premier David Eby opposes new pipelines, and Indigenous groups have vowed to prevent oil tankers in the region. The agreement also includes plans for Alberta to enhance its electricity grid and support a major carbon capture initiative, with expectations to finalize carbon pricing agreements by April 1 next year.
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