Prime Minister Mark Carney and Alberta Premier Danielle Smith have reached a landmark memorandum of understanding in Calgary. The agreement sets a path toward a new oil pipeline to the West Coast and outlines major policy shifts tied to carbon pricing and clean energy rules.
Ottawa has agreed to adjust the West Coast tanker ban if the pipeline secures approval as a project of national interest under the Building Canada Act. The MOU states the project must include Indigenous co-ownership and shared economic benefits. Alberta has agreed to introduce an industrial carbon price of 130 dollars per tonne by April 1. This places Alberta’s rate above the federal benchmark. In return, Ottawa will suspend the clean electricity regulations in the province while both sides negotiate a new carbon price deal.
The agreement links the pipeline to the proposed Pathways Alliance carbon capture project. Federal and provincial officials say both projects must advance together. Carney called the deal a major step for the country and described it as a moment that will drive new industrial growth.
Carney also acknowledged the hurdles ahead. He said support from British Columbia and B.C. First Nations remains essential. A coalition of B.C. First Nations stated on Wednesday that a pipeline to the Pacific coast will never move forward. B.C. Premier David Eby has warned that lifting the tanker ban risks major projects already underway along the coast.
Smith pushed back on the idea of any single party blocking the project. She said the MOU does not provide a veto to B.C. or First Nations. She stressed the need for full consultation and said First Nations involvement through ownership is a priority. She added that her recent discussion with Eby showed room for cooperation, even with disagreements on key elements of the plan. She said upcoming trilateral talks will focus on finding common ground.
The MOU commits Ottawa and Alberta to engage B.C. on the pipeline proposal. Both sides also agreed to work with B.C. to support other projects of national interest that address the province’s economic needs.
