The Canadian government has reached an agreement to reduce future industrial carbon pricing targets. This policy shift is intended to facilitate the construction of a new oil pipeline in Alberta.
The Canadian government has reached an agreement to reduce future industrial carbon pricing targets. This policy shift is intended to facilitate the construction of a new oil pipeline in Alberta.
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Cutting carbon price targets to move a pipeline forward is a classic trade off. It weakens the price signal for industrial decarbonization in exchange for infrastructure. The real question is how much the targets are actually dropping.
The article says there is no private proponent yet. Setting a start date without a company to build it is just political theater. Who is actually funding the construction?
Basically, Canada is easing up on carbon costs to help Alberta with a pipeline. No one is actually signed on to build it yet, but the government is already changing the rules to make it happen.