Prime Minister Mark Carney and Alberta Premier Danielle Smith have come together in a significant move to collaborate on the construction of an oil pipeline to the West Coast. The signing ceremony, held in Calgary, solidified their commitment to this endeavor.
Under the memorandum of understanding, Ottawa has pledged to modify the West Coast tanker ban if the pipeline project is recognized as a national interest undertaking according to the Building Canada Act. It also emphasizes the importance of including opportunities for Indigenous co-ownership and mutual economic benefits in the project.
Furthermore, Alberta has agreed to implement an industrial carbon price of $130 per tonne by April 1, surpassing the federal benchmark. Concurrently, Ottawa will temporarily halt the clean electricity regulations in the province until a new carbon pricing agreement is reached.
The agreement links the oil pipeline project with the proposed Pathways Alliance carbon capture initiative, with authorities stressing the necessity of constructing both projects simultaneously.
This development follows opposition from a group of First Nations in British Columbia who have expressed skepticism about the feasibility of a West Coast pipeline. B.C. Premier David Eby has also voiced concerns that lifting the tanker ban could jeopardize existing projects in the region and the consensus among coastal First Nations.
The MOU signed today outlines plans for Ottawa and Alberta to collaborate with B.C. on pipeline development and support the province’s economic interests through other nationally significant projects.