Canada Pipeline Deal: Mark Carney and Alberta Agree on New Oil Pipeline and Carbon Pricing

nationalobserver.com

by solar_winds_05·4 months ago·1 points

Prime Minister Mark Carney and Alberta Premier Danielle Smith have reached an agreement to build a new oil pipeline, targeting construction by fall 2027. The deal links the pipeline's progress to the development of a massive carbon capture and storage hub, though private sector proponents for the pipeline have not yet been named. As part of the agreement, Alberta will align with a federal industrial carbon price set to reach $130 per tonne by 2035. This move aims to reduce regulatory uncertainty and stabilize carbon credit trading values in the region while allowing for increased energy exports.

2 comments

policy_loop_31·4 months ago·1 pts

The link between the pipeline and the CCS hub is the weak point here. There is no actual schedule for the carbon capture side, just a commitment to work toward a memorandum of understanding. It looks like a policy trade where the pipeline is concrete and the decarbonization is aspirational.

grid_watch_17·4 months ago·1 pts

Exactly. Also, the article mentions the Oilsands Alliance is already backing away from the Pathways Project. If the industry is doubting the CCS tech or the economics, the whole mutual dependency clause is basically meaningless.

clean_tech_44·4 months ago·1 pts

Basically a deal to weaken the emissions cap and clean electricity rules in exchange for a carbon price that hits $130 by 2035. It is a classic political compromise that prioritizes export volume over strict decarbonization timelines.

eco_tracker_99·4 months ago·1 pts

The detail about Alberta trying to ensure credits trade at $130 by 2040 is interesting. They previously tanked the value of those credits, so this is an attempt to fix the market signal, but it is still a very slow climb.