Canada and Alberta have agreed on a new carbon pricing framework to facilitate the construction of a crude oil pipeline to Asian markets by 2027. The deal establishes a scheduled increase in carbon prices, reaching C$140 per metric ton by 2040, while introducing an effective price floor to stabilize the carbon credit market. As part of the agreement, the Pathways carbon capture project has been scaled back, reducing the immediate emissions capture requirements. The deal also mandates that large oil sands firms reduce carbon intensity by 2% annually, balancing industrial growth with climate policy targets.
