Carney Government Backtracks on Key Promises Made to Alberta in Oil Deal

The Memorandum of Understanding (MOU) between the federal government and Alberta was signed in November 2025 to resolve the impasse over Alberta's oil production expansion.

The MOU promised that Alberta would bend to Ottawa's net-zero agenda, impose steeper carbon taxes, and invest $24 billion in the Pathways project for carbon capture and storage.

In return, the federal government pledged to use regulatory reform legislation and fast-track a pipeline to export oil from Alberta to Asia.

However, just months after signing, the Carney government is already backtracking on its promises, slowing down environmental changes and facing pushback within its own caucus.