The federal government and Alberta have signed a memorandum of understanding with major oil sands companies to advance the Pathways project, a proposed west coast pipeline. The MOU ties pipeline approval to carbon capture and storage milestones, targeting 16 million tonnes of annual emissions reductions. This agreement follows a November 2025 initial deal between Ottawa and Alberta. Key details remain unclear. The article does not specify how carbon credits will be verified, who pays for the CCS infrastructure, or whether the offsets will be tradeable on carbon markets. For those tracking Canadian climate policy, the Pathways MOU is a test case for linking fossil fuel infrastructure to measurable decarbonization outcomes. The actual impact will depend on enforcement mechanisms and third party verification of the claimed reductions.
