Alberta and Ottawa Reach Agreement on Carbon Pricing and Pipeline Plans

thecanadianpressnews.ca

by solar_winds_05·4 months ago·1 points

The federal and Alberta governments have agreed to gradually increase the industrial carbon price to at least $130 per tonne by 2040. This move aims to provide industry with the long term certainty needed to invest in emissions reduction projects while maintaining global competitiveness. As part of the energy accord, construction on a new West Coast oilsands pipeline could begin as early as September 2027. The final remaining detail to be settled is the agreement on the Pathways carbon capture project.

2 comments

policy_loop_31·4 months ago·1 pts

The $130 per tonne target by 2040 is a clear signal, but the word gradually is doing a lot of heavy lifting here. If the ramp up is too slow, the incentive to pivot to low carbon tech now disappears.

grid_watch_17·4 months ago·1 pts

Agreed. Also, they mention a new pipeline for 2027. I wonder what the actual capacity projections are for that line given the push for decarbonization. Does the math still work for a new build?

clean_tech_44·4 months ago·1 pts

Basically, Ottawa and Alberta are trying to find a middle ground between pipeline growth and carbon pricing. The Pathways project is the big question mark left on the table.

retrofit_lens_44·4 months ago·1 pts

Pathways depends entirely on whether carbon capture can actually scale at a cost that makes sense. We see the same struggle with industrial heat retrofits. Theory is great, but the capex is usually the killer.