The Governments of Canada and Alberta have signed a framework agreement, a memorandum of understanding, to strengthen energy collaboration. This agreement establishes a cooperative process for the development of a major new oil pipeline and aligns federal and provincial climate policies.

New Oil Pipeline to the West Coast

The agreement commits both governments to cooperate in facilitating the application, approval, and construction of a new, privately financed and constructed pipeline. This pipeline will be co-owned by Indigenous groups and is designed to transport over 1 million barrels per day of oil from Alberta to a strategic deepwater port on the west coast, with the priority being shipment to Asian markets. The specific location of the export port was not detailed in the announcement. The federal government has committed to providing a clear and efficient approval process under the Building Canada Act upon receipt of a proposal from Alberta. This initiative is aimed at diversifying Canada's export markets and reducing reliance on the United States as a single trade partner for its oil.

Changes to Federal Environmental Regulations

A key component of the agreement is the federal government's commitment not to implement a federal oil and gas emissions cap. It will also immediately suspend federal clean electricity regulations. According to the Alberta government, this will enable a "massive increase in oil production and private sector jobs," helping the province meet its production goals of 6 million barrels per day by 2030 and 8 million by 2035.

Commitment to Carbon Capture and Storage

Both governments have committed to partner with companies in the Pathways Alliance to finance and construct a large-scale carbon capture and storage (CCS) project in Alberta. The federal government described this CCS project as a "prerequisite" to the new pipeline. The project aims to lower the emission intensity of Alberta bitumen, with the goal of making it "the cleanest heavy oil on the planet" and displacing heavier-emitting oil from other countries.

Additional Climate and Pricing Agreements

The framework also includes several other environmental and regulatory commitments:

• An industrial carbon pricing agreement for the province.
• An agreement to lower methane emissions by 75% relative to 2014 levels over the next decade.
• A commitment to design and implement globally competitive, long-term carbon pricing and sector-specific stringency factors for large emitters in the oil, gas, and electricity sectors through Alberta’s TIER system by 1 April 2026, with the goal of achieving net zero greenhouse gas emissions by 2050.