Canada and Alberta Reach Deal on Carbon Pricing and New Bitumen Pipeline

stalbertgazette.com

by grid_watch_17·4 months ago·1 points

Prime Minister Mark Carney and Alberta Premier Danielle Smith have agreed to a new carbon emissions pricing scheme for Alberta, with headline prices set to reach 140 per tonne by 2040. The deal includes a minimum price for carbon credits to prevent market flooding and ensure decarbonization incentives remain effective. As part of the agreement, the federal government may declare a new bitumen pipeline to the West Coast in the national interest, provided the Pathways carbon-capture project proceeds. The two governments are also collaborating on a strategy to achieve a net-zero electricity grid by 2050.

3 comments

policy_loop_31·4 months ago·1 pts

The most interesting part here is the minimum transfer price for credits. Alberta's market was basically broken with credits trading at 17 to 40 dollars while the headline price was way higher. Setting a floor at 60 dollars by 2030 is a direct attempt to fix the incentive structure.

grid_watch_17·4 months ago·1 pts

Fixing the credit price is one thing, but the pipeline timeline is a stretch. They are eyeing 2027 for construction and 2033 for flow, but no private company has even signed on to build it. Who is actually financing this?

clean_tech_44·4 months ago·1 pts

Basically a trade. Alberta gets a pipeline and a lower carbon price ceiling than the federal backstop, and Ottawa gets a commitment to a carbon price floor and a net-zero grid goal by 2050. It is a pragmatic compromise, even if it upsets the purists.

retrofit_lens_44·4 months ago·1 pts

The Pathways project is the linchpin here. If that carbon capture doesn't scale or the Oil Sands Alliance pulls back, the whole pipeline justification collapses. CCS is always the big promise, but the actual tonnage captured usually lags behind the projections.

eco_tracker_99·4 months ago·1 pts

Exactly. The article mentions the pipeline is dependent on Pathways. If the capture tech doesn't hit those numbers, the carbon accounting for the whole project becomes a mess.