Canada's Carney and Alberta's Smith seal pipeline and carbon‑price pact

Prime Minister Mark Carney and Alberta Premier Danielle Smith met in Calgary to sign a deal that accelerates construction of a new bitumen pipeline to the West Coast, targeting a fall 2027 start. The agreement also includes a new carbon‑price framework for Alberta, raising the effective price to C$130 per tonne and the headline price to C$140 per tonne by 2040. Carney pledged to declare the pipeline a project of national interest by October, positioning it as a key component of Canada’s strategy to become a global energy supplier to Asian markets such as Japan, South Korea, China and India.

The pact signals a thaw in long‑standing federal‑provincial tensions over energy policy and environmental regulation, with both leaders emphasizing cooperation despite separatist sentiments in Alberta. It is intended to spur investment, create jobs and bolster Canada’s export revenues while aligning the oil sector with lower‑emission standards.

Implementation will require coordination with the Oil Sands Alliance, First Nations, and British Columbia officials, particularly regarding the related Pathways carbon‑capture project.