Canada and Alberta Agree to Slow Industrial Carbon Price Hikes for New Pipeline

The Canadian federal government and Alberta have reached a deal to slow the increase of the industrial carbon price, pushing the target of $130 per tonne back to 2040. In exchange, Ottawa will designate a proposed West Coast oil pipeline as a project of national interest, potentially allowing construction to begin by 2027. The agreement also links pipeline progress to the Pathways carbon capture project, though the scope of emissions reductions for that project has been narrowed. The deal has sparked significant debate, with critics arguing it undermines Canada's 2050 net zero goals while industry leaders weigh the impact of the revised compliance costs.