A new west coast pipeline is one step closer to reality.
Driving the news: Ottawa and Alberta are ready to strike a deal on industrial carbon pricing, sources told the Globe and Mail. The two sides will agree to raise Alberta’s fee for industrial polluters from the current rate of $95 per tonne of carbon emitted to $130 per tonne by 2040.
Prime Minister Mark Carney reportedly presented the deal to his cabinet yesterday, and is expected to fly to Alberta to meet Premier Danielle Smith later this week.
Alberta’s carbon pricing is regulated at a provincial level but still must comply with federal standards; this rate is way less than the original $170-per-tonne by 2030 goal.
Why it matters: The memorandum of understanding between the feds and Alberta to build a new oil pipeline to B.C. includes commitments for the province to cut emissions, including raising its carbon price. With that hurdle cleared, the pipeline is one step closer to reality.
Several goals still need to be met and details need to be figured out — like the pipeline’s route and who will build it — but Alberta still plans to submit an application to Ottawa’s Major Projects Office by July and should feel pretty confident in doing so.
Zoom out: The Carney government has not hesitated to slash Trudeau-era environmental regulations for the sake of political expediency and infrastructure (see also: ending the consumer carbon tax, nerfing the oil and gas sector emissions cap). With this move, he’s basically torn up the industrial pricing strategy, which will have carbon consequences.—QH
