Alberta Premier Danielle Smith and Prime Minister Mark Carney are facing challenges in meeting the initial deadlines set in their energy and climate agreement, which includes plans for a new export pipeline from Alberta to the West Coast. Smith mentioned delays in negotiations during an interview at the CERAWeek by S&P Global conference in Houston, Texas.
The memorandum of understanding signed by Carney and Smith last November provides Alberta with exemptions from federal environmental laws and pledges political support for a new oil pipeline to the B.C. coast. The agreement outlines specific deadlines to be met by April 1, such as a cooperation agreement on impact assessments, a methane equivalency agreement, a carbon pricing equivalency agreement, and a trilateral MOU with the Pathways companies.
While progress has been made on some fronts, such as finalizing the cooperation agreement, challenges remain with other aspects like the industrial carbon tax and the Pathways carbon capture project involving oilsands companies. The Pathways project aims to capture emissions from oilsands facilities in Alberta for storage underground.
Notably, concerns have been raised by the industry regarding the impact of carbon pricing policies on competitiveness. Carney’s decision to maintain the industrial carbon tax has sparked debate within the sector. Despite these issues, both Smith and Carney remain committed to the agreement to support the growth of the energy sector in Alberta and Canada.
Smith expressed confidence in attracting foreign investment for the proposed oil pipeline project, mentioning potential interest from companies and sovereign wealth funds. She highlighted previous foreign investments in Canada’s energy sector, citing LNG Canada as an example. Smith anticipates significant interest from various foreign stakeholders in the potential pipeline project.