Canada, Alberta Agree on West Coast Oil Pipeline Pathway

Alberta Premier Danielle Smith and Canadian Prime Minister Mark Carney announced an implementation agreement for the West Coast oil pipeline, outlining a pathway to construction beginning as early as September 1, 2027. The agreement includes a comprehensive proposal for the pipeline to be submitted to the Federal Major Projects Office by July 1, 2026.

The industrial carbon price will remain at $95/ton until December 31, 2026, then increase by $100 over the next three years, reaching $130/ton by 2035. The target for an effective carbon price is $130/ton by 2040 with binding annual benchmarks.

The agreement aims to reduce methane emissions from oil and gas by 75% below 2014 levels by 2035 and will issue 75 million tons of carbon contracts for difference to support major carbon capture and emission reduction projects. This is expected to generate up to 50,000 jobs in Alberta and across Canada.