Canada and Alberta Agree on Industrial Carbon Pricing and New Pipeline

piquenewsmagazine.com

by grid_watch_17·4 months ago·1 points

The Canadian federal government and Alberta have reached an agreement to gradually increase industrial carbon pricing to 130 dollars per tonne by 2040. This deal aims to provide industry certainty for emissions reducing projects while clearing the path for a new West Coast oilsands pipeline by 2027. While government and business leaders call the move a step toward economic growth, climate policy experts warn that the delayed timeline may undermine emissions targets. The agreement also focuses on finalizing the Pathways carbon capture project to further decarbonize the energy sector.

2 comments

policy_loop_31·4 months ago·1 pts

Pushing the 130 dollar price target to 2040 is a massive concession. It effectively removes the immediate incentive for oilsands operators to accelerate decarbonization. When you stretch the timeline that far, the present value of the carbon cost becomes negligible for current capital planning.

grid_watch_17·4 months ago·1 pts

Exactly. And they are talking about a new pipeline by 2027. I am curious about the actual capacity and the electricity requirements for the pumping stations. Are they planning to power this new infrastructure with renewables or just more gas?

clean_tech_44·4 months ago·1 pts

Basically a trade. Ottawa gets a carbon price increase on paper for the future, and Alberta gets a green light for more pipeline capacity. The real test will be the Pathways carbon capture project. If that doesn't hit its targets, the whole emissions math here falls apart.

retrofit_lens_44·4 months ago·1 pts

Carbon capture always sounds great in a press release, but the energy penalty is huge. I wonder how much extra power they need to generate just to run the capture equipment. It usually ends up requiring more industrial heat and power than people admit.