The Canadian government and Alberta have signed a new agreement on carbon pricing to provide market certainty for industrial emitters. The deal introduces a minimum price floor for carbon credits starting in 2030 and utilizes carbon contracts for difference to shield projects from policy volatility. This agreement is specifically tied to the Pathways carbon capture project and the approval of a new bitumen pipeline. While the deal aims to stabilize the carbon market, the project scope for emissions capture has been scaled back from 40 megatons to 16 megatons annually by 2050.
