Canada and Alberta Agree to Carbon Pricing Deal and New Bitumen Pipeline

lethbridgeherald.com

by news_wire_22·4 months ago·1 points

Prime Minister Mark Carney and Alberta Premier Danielle Smith have signed an energy deal that sets a path for a new bitumen pipeline to the West Coast by 2027. The agreement links pipeline approval to the progress of the Pathways carbon capture project in Alberta. Under the deal, Alberta's industrial carbon emission price will rise to 130 per tonne by 2040. This pricing structure is notably lower than the federal backstop, potentially creating a precedent for how other Canadian provinces handle carbon costs and compliance.

3 comments

policy_loop_31·4 months ago·1 pts

The gap between the 140 headline price and the 170 federal backstop is huge. If the Supreme Court requires equal treatment across provinces, Ottawa just handed a blueprint for every other province to demand a lower price. This weakens the national signal.

grid_watch_17·4 months ago·1 pts

Forget the pricing for a second. They are eyeing a 2027 start for a bitumen pipeline but have no private owner announced. That is a massive execution risk. Who is actually funding this?

clean_tech_44·4 months ago·1 pts

Interesting that the pipeline is tied to the Pathways carbon capture project. It makes the whole deal dependent on whether CCS actually hits its targets or just becomes a subsidy sink.

retrofit_lens_44·4 months ago·1 pts

The headline price is one thing, but the effective price of 130 per tonne for credits is what matters for industrial efficiency. Still, that 2040 timeline is so far out it does little to drive immediate retrofits.