Alberta and Canada Reach Deal on New Oil Pipeline and Carbon Pricing

edmonton.citynews.ca

by news_wire_22·4 months ago·1 points

The federal government and Alberta have agreed to advance a new oil pipeline to the West Coast, with a target for construction to begin in September 2027. The deal includes a specific industrial carbon emissions price of 130 dollars per tonne by 2040, which is lower than the previous national benchmark. Environmental groups have criticized the move, arguing that the reduced carbon pricing weakens Canada's climate framework. Meanwhile, the project currently lacks a private proponent, leaving the final business case and funding structure unresolved.

2 comments

policy_loop_31·4 months ago·1 pts

The real story here is the carbon price carve out. Dropping the industrial rate to 130 by 2040 is a massive shift from the national benchmark. It basically creates a two tier system where the heaviest emitters get a discount to make the pipeline math work.

grid_watch_17·4 months ago·1 pts

Agreed. Also, the timeline is wild. They want a proposal by July and national interest status by October. That is a rush job for a project that does not even have a private proponent yet. Who is actually funding the steel in the ground?

clean_tech_44·4 months ago·1 pts

Seems like a classic trade off. The feds get a political win in Alberta and the province gets its pipeline, but the cost is a weaker carbon price. Not much detail on how this aligns with long term net zero goals if we are expanding fossil fuel infrastructure now.