Facing an oil pipeline conundrum, Ottawa is trying to kill two birds with one stone. Unfortunately, these two particular birds are flying in opposite directions.
What happened: Alberta and the federal government have signed a memorandum of understanding (kind of like a bureaucratic pinky promise) that includes a pledge for a new oil pipeline to B.C., as well as commitments to reduce Alberta’s carbon footprint.
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The pact will require Alberta to cut its methane emissions by 75% over the next decade and significantly increase the province’s industrial carbon price.
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The deal also has a clause that no pipeline will be built without the implementation of the $16.5 billion Pathway Alliance carbon capture project in northern Alberta.
Why it matters: The structure of this pipeline pact is the first indication of how the Carney government plans to balance its goal of becoming a so-called energy superpower with the climate policies that the Liberals — and Carney himself — have long championed.
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Carney said the new investment in the Pathway Alliance will make it the largest carbon capture project in the world, and is confident it will offset the impact of the new pipeline.
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Some in his government aren’t as convinced. MP Steven Guilbeault is stepping down from his cabinet post over the pipeline deal.
Yes, but: B.C. Premier David Eby and Indigenous groups have staunchly opposed a new pipeline through the province. Eby said greenlighting the project would be like “explaining to a vegetarian that they’ll still be a vegetarian if they eat a few steaks.”
Bottom line: Alberta and Ottawa will have to cough up some pretty major concessions to get B.C. and Indigenous groups to flip their tune. Maybe B.C. will get Jasper National Park in a trade?—LA