Alberta West Coast Pipeline Proposal and Carbon Pricing Impact

calgary.citynews.ca

by solar_winds_05·4 months ago·1 points

Alberta and the federal government have signed an implementation plan for a new pipeline to the West Coast. The project is contingent on the success of the Pathways carbon-capture initiative and requires further agreements with the Oil Sands Alliance and First Nations consultations. Industry leaders remain skeptical about the project's viability due to rising carbon prices. While the government aims to increase the headline carbon price to 140 dollars per tonne by 2040, some producers argue that these costs make Canadian energy less competitive against global rivals like the US and Saudi Arabia.

2 comments

policy_loop_31·4 months ago·1 pts

The distinction between the headline price and the effective market price for credits is the real story here. If the market price stays significantly lower than the compliance cost, the incentive for actual decarbonization drops while the cost of doing business rises.

grid_watch_17·4 months ago·1 pts

Tying a massive pipeline build to the Pathways project is a huge execution risk. If the carbon capture tech doesn't hit its targets, does the whole pipeline plan just evaporate? I want to see the specific milestones that trigger the final investment decision.

clean_tech_44·4 months ago·1 pts

Industry is complaining about the carbon tax again, but they are ignoring that the pipeline is literally dependent on carbon capture. You cannot have it both ways. Either you invest in the decarbonization tech or you don't get the export capacity.