Mark Carney has reached an agreement with Alberta regarding a new heavy oil pipeline that will extend from the province’s oil sands to the Pacific coast. This project has been described as politically controversial and is anticipated to face significant opposition.
Shortly after the announcement, Canadian Minister of Culture Steven Guilbeault, a former environment minister and long-time environmental advocate, declared his resignation from cabinet due to his strong opposition to the pipeline project. Prime Minister Justin Trudeau expressed optimism about the agreement during a meeting with Alberta Premier Danielle Smith, stating that it could lead to an industrial transformation involving not just the pipeline but also nuclear energy and data centers.
The agreement follows extensive negotiations between Carney and Smith, marking a shift in relations between the federal government and Alberta, which has recently accused Ottawa of restricting its economic potential through carbon emission regulations. The deal aims to boost oil and gas exports while aligning with the federal government’s climate targets. Carney’s government plans to exempt the proposed pipeline from the current coastal oil tanker moratorium and emissions cap, but in return, Alberta will need to enhance its industrial carbon pricing and invest in a substantial carbon capture project.
Despite the agreement, no private companies have yet shown interest in financing the project, which may encounter significant opposition from the government of British Columbia and Indigenous communities along the Pacific coast. First Nations representatives have previously expressed their firm resistance to any oil tankers on their coast and have warned that the project cannot proceed without their consent.
Prime Minister Trudeau had indicated that support from First Nations would be crucial for any new pipeline project. Following the announcement of the agreement, disputes remain between Alberta and neighboring British Columbia regarding pipeline proposals and tanker traffic in the region.
Source: https://www.theguardian.com/world/2025/nov/27/mark-carney-alberta-oil-pipeline-deal-canada-first-nations