Nov. 24, 2025
The federal and Alberta governments have agreed on the broad terms of a new energy-sector deal that could grant Alberta exemptions from key federal environmental rules while securing Ottawa’s political support for a proposed oil pipeline to the B.C. coast, CBC News has learned.
Prime Minister Mark Carney and Alberta Premier Danielle Smith are expected to announce the memorandum of understanding (MOU) at a joint news conference in Calgary on Thursday.
According to sources briefed on the plan, the deal would see Ottawa suspend its clean electricity regulations in Alberta if the province adopts a tougher industrial carbon-pricing system and commits to advancing the multibillion-dollar Pathways Alliance carbon capture project.
The agreement could ease years of political tension between the two governments and reset their working relationship. It also outlines expectations for Alberta to engage with the B.C. government and Indigenous communities as it explores a potential pipeline route to the northwest coast.
B.C. Premier David Eby said Monday he was told the details were still not finalized. B.C. Energy Minister Adrian Dix called the pipeline discussion “speculative,” noting no project has been formally proposed.
Environmental groups, meanwhile, warn the agreement risks undermining Canada’s climate commitments. Greenpeace Canada’s Keith Stewart said expanding oil production to justify a new pipeline would outweigh any emissions reductions from carbon capture.
More details of the federal–Alberta deal are expected Thursday.
