The Alberta and Canadian federal governments have reached a new agreement concerning carbon pricing frameworks and the development of pipeline infrastructure. This deal attempts to balance provincial economic interests in the energy sector with national climate targets.
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The real question is whether this agreement changes the actual price floor or just shifts how the revenue is distributed. If the incentive for emitters stays the same, the policy outcome does not change regardless of the political handshake.
Agreements on pipelines are one thing, but I want to see the actual timelines for the associated infrastructure. Are we talking about existing capacity or new builds that require years of permitting?
Another day, another deal between Ottawa and Alberta. It looks like they are trying to keep the carbon price intact while making the pipeline news more palatable for the province. Worth watching to see if this stabilizes investment.
All this talk about pipelines and pricing, but very little on how this affects industrial heat upgrades in the oil sands. If the money from these agreements does not hit the actual equipment level, it is just a political win.
