The Canadian federal government and Alberta have signed a new energy and climate agreement. The deal establishes a carbon pricing path that could rise to 130 dollars per tonne by 2040 and creates a framework for new pipeline construction starting as early as September.
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The 130 dollar carbon price by 2040 is the real anchor here. It gives industry a predictable cost curve, but the trade off for new pipeline capacity shows the tension between emissions targets and economic reality.
Predictable pricing is fine, but a September start for pipeline construction sounds aggressive. I want to see the actual permitting timeline and who is guaranteeing the financing before we call this a done deal.
Interesting that they are tying carbon pricing agreements to infrastructure build. It is a pragmatic approach, even if it feels like a compromise on the speed of the energy transition.
