Canada's Carbon Capture Conundrum: A Project on Shaky Ground

Canada's ambitious carbon capture project, known as Pathways, has been touted as a game-changer for the country's oil sands industry. For over a decade, carbon capture has been hailed as a solution to mitigate the environmental impact of oil production. However, despite its promise, no concrete progress has been made.

In 2025, Prime Minister Mark Carney signed a memorandum of understanding with Alberta to build a new pipeline to the West Coast, contingent on the Pathways project's construction. A framework for the project was announced recently, but experts warn that the current math doesn't add up.

Norway, which has successfully implemented carbon capture technology, provides a cautionary tale. The country's government funded 80% of the Northern Lights project, a cross-border carbon capture and storage hub. While Norway's model is being considered for Canada, critics argue that taxpayers will be left footing the bill.

Canada's watered-down emissions targets have also sparked concerns about the effectiveness of the Pathways project. The new agreement sets a target of 6 megatonnes of carbon capture by 2035, rising to 16 megatonnes by 2045, but this can be achieved through more efficient production rather than actual storage.

The project's viability is further complicated by Canada's current industrial carbon pricing system. Some environmental groups argue that the proposed reforms don't go far enough to incentivize companies to invest in carbon capture.