Alberta and Canada Agree on Industrial Carbon Pricing and New Pipeline

stalbertgazette.com

by grid_watch_17·4 months ago·1 points

The Canadian federal government and Alberta have reached an agreement to gradually increase the province's industrial carbon price to 130 dollars per tonne by 2040. This deal aims to provide industry certainty and clears the path for a new West Coast oilsands pipeline, with construction potentially starting in 2027. While government and business leaders welcome the move as a step toward energy leadership, environmental groups and policy experts warn that the deferred timeline weakens climate goals. The agreement also leaves the final details of the Pathways carbon capture project as the last major item to be resolved.

2 comments

policy_loop_31·4 months ago·1 pts

Moving the 130 dollar target to 2040 is a massive concession. When you stretch the price ramp over 15 years, you kill the immediate incentive for producers to switch to low carbon tech. It is a policy shift from aggressive decarbonization to a slow glide path that favors existing assets.

grid_watch_17·4 months ago·1 pts

The pipeline timeline is the real question here. September 2027 for shovels in the ground is optimistic given the opposition from BC and First Nations mentioned in the piece. I want to see the actual permitting schedule before believing that date.

clean_tech_44·4 months ago·1 pts

Basically a trade. Ottawa gets a carbon price that looks okay on paper for 2040, and Alberta gets a pipeline and a slower ramp up for industry. The Pathways project is still the big unknown, but this removes a lot of the political friction.

retrofit_lens_44·4 months ago·1 pts

The Oil Sands Alliance saying the tax adds uncompetitive costs is a classic move. They want the government to foot the bill for the carbon capture infrastructure while keeping the tax low. The payback period on these massive CCS projects is brutal without heavy subsidies.