Federal Government Signs Carbon Pricing Deal with Alberta
On Friday, Prime Minister Carney and Premier Smith announced a new agreement on a carbon pricing scheme for Alberta. Additionally, the agreement included a commitment for the Federal government to approve a pipeline as being in the national interest by October of this year. The approval for that pipeline is contingent on the completion of the Pathways carbon-capture project.
Pipeline Approval Overview
In exchange for approving a pipeline, Alberta has agreed to facilitate investment into renewable energy projects, as well as forming a working group with the federal government working to achieve a net-zero grid by 2050.
Alberta’s carbon price will be $140 per tonne by 2040. This is significantly discounted over the national backstop price, which is scheduled to reach $170 per tonne in 2030.
As for the pipeline, no private company has come forward seeking to build one or has thus far been announced, but Alberta says that it is undertaking planning and consultations and expects a proposal to be ready by July.
The announcement angered BC Premier Eby, who accused the federal government of caving to Alberta, and the move angered environmental groups.
The move comes as Alberta navigates a separatist movement, driven primarily by perceived unfair treatment of Alberta within Canada. This is generally centered around Alberta’s oil and gas industry and how such resources are treated by Ottawa.