Interprovincial Economic Development – Ontario and Alberta
In Recent News
This month, the federal government announced a number of agreements with provinces. PM Carney and Premier Ford announced a partnership between Canada and Ontario to build more affordable homes, infrastructure, and transit. This partnership will reduce taxes and fees for a home in Ontario by up to $200,000. It also agrees that both levels of government will jointly advance transit infrastructure projects to support growing communities, cut commute times, and connect people to careers and housing.[1]
The federal government also announced a co-operation Agreement with Nova Scotia on environmental and impact assessment. This agreement will bring a “one project, one review” approach to major infrastructure initiatives in Nova Scotia. Both levels of government will implement a streamlined and flexible assessment process that minimises duplication and delivers major projects faster while reinforcing strong environmental protections and upholding the rights of Indigenous Peoples.[2]
An agreement-in-principle, between Alberta and the federal government, to lower emissions of methane in the oil and gas sector was also announced. This announcement builds on the November 2025 MOU. This new agreement includes the objective of reducing methane emissions by 75% below 2014 levels by 2035 in Alberta.
Under the proposed framework, Alberta would implement a performance-based approach that combines regulations, offset credits, and targeted investments. Canada intends to continue to work with Alberta to develop an equivalency agreement under the Canadian Environmental Protection Act, 1999, so that federal methane regulations would be stood down in Alberta, provided that the necessary equivalent emissions reductions are realized.
The agreement-in-principle commits to:
- Develop an outcome-based equivalency agreement with a pathway to the 2035 emissions reduction target.
- Use an independent, jointly selected third party to conduct methane modelling and assess emissions reductions.
- Enhance transparency through published information on covered emission sources and Alberta’s approach to reducing methane emissions.
- Take corrective action if reductions are not achieved as expected.[3]
References
- [1] Prime Minister Carney secures new partnership with Ontario to cut taxes on housing and boost supply | Prime Minister of Canada
- [2] Canada and Nova Scotia sign a new agreement to get major projects built faster | Prime Minister of Canada
- [3] Canada and Alberta reach agreement-in-principle on methane equivalency | Prime Minister of Canada