British Columbia is raising objections after the federal government signed a second energy agreement with Alberta that reduces emissions costs for oil companies and advances plans for a new pipeline to the Pacific coast.
New Pipeline Route to Asia by 2027
The deal, announced Friday in Edmonton by Prime Minister Mark Carney and Alberta Premier Danielle Smith, sets a July 1 deadline for Alberta to submit a pipeline proposal to Ottawa's major projects office. Carney has committed to providing the necessary conditions for construction by September 1, 2027.
This agreement builds on a previous accord in November that supported one or more pipelines to the B.C. coast in exchange for oilsands producers adopting carbon-capture technology.
B.C. Premier Condemns the Deal
Premier David Eby criticized the agreement, stating, "As a country, it's time to stop rewarding bad behaviour." He pointed to Alberta's separatist movement, which polls suggest is supported by up to 50 percent of the United Conservative Party's members. Eby argued that projects should not be prioritized simply because a premier threatens secession.
Carbon Price Disparity
The deal lowers Alberta's industrial carbon price trajectory to $130 per tonne by 2040, while other provinces face a rise to $170 per tonne by the same year. This preferential treatment has drawn ire from B.C. and other provinces.
Pipeline Route Uncertainty
Smith has repeatedly expressed interest in reviving the Northern Gateway pipeline through northern B.C., a project opposed by the Coastal First Nations alliance, including the Haida and Gitxaała Nations. However, she has recently shown less enthusiasm for a southern route to Burrard Inlet or Delta, which the federal government has floated and B.C. seems more open to.
"We're getting very close to the July 1 deadline for submitting a pipeline proposal, so we've got a pretty good idea right now about what the most economic routes are," Smith said. She added that once a route is identified, the province will work with affected First Nations on economic benefits and equity ownership.
No Proponent or Defined Route Yet
Eby noted that the pipeline project currently lacks a private proponent or a defined route. He urged Ottawa to focus on B.C. projects that are "shovel-ready," such as those involving critical minerals, natural resources, and port access. "The federal government must work as closely with us on these projects as they work with the government of Alberta on Premier Smith's proposed pipeline," he said.
