Carney, Smith to Sign Energy MOU in Calgary

Prime Minister Mark Carney and Alberta Premier Danielle Smith are scheduled to sign a memorandum of understanding on energy cooperation Thursday in Calgary, outlining steps that could pave the way for a new pipeline from Alberta to British Columbia's northwest coast, though federal officials stressed it falls short of a firm commitment.

The agreement, which Carney described as creating "necessary conditions, but not sufficient conditions" for such a project, emphasizes collaborative federalism. Speaking in the House of Commons Tuesday, Carney said any pipeline would require agreement from the British Columbia government and affected First Nations. "We believe the government of British Columbia has to agree. We believe that First Nations right holders in this country have to agree," he stated.

Details of the MOU, leaked in advance of the announcement, indicate it includes Alberta's commitments to strengthen its industrial carbon pricing system, which Smith had paused earlier this year, and to encourage oilsands producers to invest in the Pathways Alliance's carbon capture and storage initiatives. In exchange, the federal government is prepared to offer carveouts on certain...