Prime Minister Mark Carney secures $20 bn deal with British Columbia, keeps North Coast tanker ban and clears way for an

On July 2, 2026 Prime Minister Mark Carney and British Columbia Premier David Eby announced a memorandum of understanding delivering roughly $20 billion in federal funding for projects across the province. The agreement maintains the federal North Coast tanker ban, allocates up to $3 billion for the North Coast Transmission Line, up to $3 billion for the George Massey Tunnel replacement, $10 billion for upgrades to the Roberts Bank terminal, $500 million for the Red Chris mine, and additional support for ports, forestry, steel and LNG initiatives.

In return, British Columbia will not oppose a new trans‑provincial oil pipeline from Alberta to the coast and will receive compensation for any environmental risks if the pipeline proceeds. Alberta Premier Danielle Smith is expected to submit the pipeline proposal later that day, with Carney traveling to Alberta for a joint news conference.

Carney also told Canadians in a video address that national emissions will be higher in the next few years than previously projected, saying the prior climate plan was “not sustainable.” He argued that continued oil‑and‑gas production is essential for affordability, export markets and national unity, linking the investment plan to broader economic diversification amid separatist pressures in Alberta and Quebec.