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CALGARY \u2014 Alberta and Ottawa have finalized a sweeping new energy and climate agreement aimed at accelerating construction of a major new oil pipeline to Canada\u2019s west coast, a move both governments say could reshape the country\u2019s economic future and strengthen energy exports to Asian markets.<\/p>\n
The agreement, announced Friday by Prime Minister Mark Carney and Alberta Premier Danielle Smith in Calgary, lays out a pathway for design and construction of a new pipeline to begin as early as Sept. 1, 2027.<\/p>\n
The proposed project would transport more than one million barrels of oil per day to tidewater, reducing Canada\u2019s long-standing dependence on the United States as its primary energy customer while expanding access to growing Asian markets.<\/p>\n
The deal builds on a memorandum of understanding signed between Alberta and the federal government in November 2025 and includes agreements on industrial carbon pricing, regulatory streamlining, emissions policy and support for major infrastructure development.<\/p>\n
\u201cThis agreement sends a clear message to investors and global partners that Canada and Alberta are serious about expanding market access, building major infrastructure and creating the conditions for long-term investment in our province\u2019s energy sector,\u201d Smith said in a statement.<\/p>\n
\u201cAlberta is ready to build, invest and partner, but we cannot afford to lose another decade.\u201d<\/p>\n
Carney framed the agreement as a signal Canada is prepared to move more quickly on major nation-building projects while balancing economic growth with emissions reduction goals.<\/p>\n
\u201cToday\u2019s agreement reinforces that Alberta and Canada are lands where the opportunities are plentiful, the rules are clear, and one project means one review,\u201d Carney said.<\/p>\n
\u201cWe are building a Canada with a more prosperous, sustainable and resilient economy for all.\u201d<\/p>\n
Under the agreement, Alberta intends to submit a proposal for the pipeline to the federal Major Projects Office by July 1, with Ottawa expected to designate it as a project of national interest by Oct. 1, 2026.<\/p>\n
The governments say consultations with Indigenous communities will remain central to the project\u2019s development, with officials emphasizing opportunities for Indigenous ownership and long-term economic participation.<\/p>\n
Former Fort McKay First Nation chief Jim Boucher welcomed the agreement and said Indigenous co-ownership could generate significant long-term prosperity for communities.<\/p>\n
\u201cI\u2019m encouraged to see the governments of Alberta and Canada take this next step toward advancing a new Indigenous co-owned pipeline to the west coast,\u201d Boucher said.<\/p>\n
\u201cThis project would provide significant economic benefits and long-term prosperity for First Nations.\u201d<\/p>\n
M\u00e9tis Settlements General Council president Dave Lamouche also praised the agreement, saying projects of this scale could create long-term employment, training and economic stability across generations.<\/p>\n
Business groups and industry leaders also described the agreement as a major turning point for Canada\u2019s energy sector.<\/p>\n
Deborah Yedlin, president and CEO of the Calgary Chamber of Commerce, said the agreement arrives at \u201ca pivotal moment in the history of global energy markets.\u201d<\/p>\n
\u201cWe commend the governments of Canada and Alberta for advancing key components of the MOU through collaborative action, including a commitment to develop a west coast pipeline through the Major Projects Office under a defined timeline, providing much-needed certainty needed by industry to invest capital,\u201d Yedlin said.<\/p>\n
The agreement also significantly reshapes Alberta\u2019s industrial carbon pricing framework.<\/p>\n
Instead of rising to $170 per tonne by 2030 under previous federal plans, the industrial carbon price will now remain at $95 per tonne for the rest of 2026, rise to $100 in 2027 and gradually increase to $130 per tonne by 2035.<\/p>\n
Alberta says the revised pricing structure could save industry partners roughly $250 billion in avoided costs through 2050.<\/p>\n
The agreement also includes a price floor for Alberta\u2019s Technology Innovation and Emissions Reduction system beginning in 2030 to reduce volatility and encourage investment in emissions-reduction technologies.<\/p>\n
Oil Sands Alliance president Kendall Dilling said the organization appreciates the additional clarity provided by the agreement, although he cautioned carbon pricing still creates competitiveness challenges for the sector.<\/p>\n
\u201cOil Sands Alliance is committed to advancing the Pathways carbon capture and storage project provided the necessary regulatory and fiscal terms are in place,\u201d Dilling said.<\/p>\n
\u201cWe fully support the Prime Minister and Premier\u2019s shared vision of making Canada an energy superpower and growing Alberta oil production.\u201d<\/p>\n
The agreement also commits both governments to continue supporting the Pathways carbon capture and storage project, which proponents say could become the world\u2019s largest carbon capture network.<\/p>\n
Additional measures include a commitment not to proceed with a federal oil and gas emissions cap, continued abeyance of federal Clean Electricity Regulations in Alberta and an agreement-in-principle allowing Alberta to continue regulating methane emissions under its existing system while targeting a 75 per cent reduction from 2014 levels by 2035.<\/p>\n
The agreement also establishes plans for a joint federal-provincial electricity working group exploring nuclear energy, geothermal power, hydrogen, wind, solar and natural gas generation.<\/p>\n
The announcement comes as Canada and its allies increasingly focus on energy security, export diversification and domestic infrastructure development amid geopolitical instability and rising global energy demand.<\/p>\n
While some environmental groups criticized the agreement Friday, both governments argued the deal strikes a practical balance between economic growth and long-term emissions reduction goals.<\/p>\n
Smith described the agreement as evidence Alberta and Ottawa can work together after years of strained relations over energy policy.<\/p>\n
\u201cIt means we\u2019re much closer to attaining our joint ambition to make Canada a global energy leader,\u201d Smith said during Friday\u2019s signing ceremony.<\/p>\n
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