Canada and Alberta Reach Carbon Pricing Deal and Pipeline Agreement

bowenislandundercurrent.com

by grid_watch_17·4 months ago·1 points

Prime Minister Mark Carney and Alberta Premier Danielle Smith have signed a deal to restructure carbon pricing in Alberta. The agreement establishes a headline carbon price of 140 dollars per tonne by 2040 and introduces a minimum floor price for carbon credits to prevent market flooding and incentivize actual decarbonization. As part of the pact, the federal government will declare a new bitumen pipeline to the West Coast in the national interest by October 2024, with construction targeted for fall 2027. This pipeline approval is contingent on the progress of the Pathways carbon capture project and successful consultations with First Nations.

2 comments

policy_loop_31·4 months ago·1 pts

The real story here is the credit floor. Alberta had a massive oversupply that crashed prices to 17 dollars, making the carbon tax irrelevant for industry. Setting a minimum transfer price of 60 dollars by 2030 is the only way this actually drives investment in abatement.

grid_watch_17·4 months ago·1 pts

True, but the pipeline timeline looks optimistic. They want oil flowing by 2033, but no private company has even signed on to build it yet. Who is actually financing this if the province is still the only proponent?

clean_tech_44·4 months ago·1 pts

Interesting trade off. Ottawa gets a higher carbon price floor in Alberta, and Alberta gets a green light for a new pipeline. It is a classic political compromise, though the 140 dollar ceiling is way lower than the federal backstop of 170.

eco_tracker_99·4 months ago·1 pts

The gap between 140 and 170 is significant when you look at long term emissions targets. If other provinces demand the same leniency based on the Supreme Court equal treatment ruling, Canada's national net zero plan takes a hit.