It’s amazing what President Donald Trump’s tariffs—and all that loose talk about annexing Canada—can do to jolt Canada into getting serious about major economic projects. That pressure formed the backdrop for what happened last week, when Canada and Alberta struck the most significant federal-provincial energy deal in decades.
The agreement commits both governments to fast-track the construction of “one or more” new, privately financed oil pipelines, and to build the world’s largest carbon-capture project. The deal also fulfills Prime Minister Mark Carney’s campaign promise to make Canada an “energy superpower,” including by securing for Alberta a pipeline to Asian markets to reduce Canada’s dependence on the U.S.
“It creates an energy transition, all aspects of energy, but really sets the stage for an industrial transformation,” said Carney. Alberta Premier Danielle Smith called the deal “a moment of opportunity” and the beginning of a new relationship with Ottawa.
The agreement is being billed as a grand bargain because everything hinges on a clear trade-off: Alberta gets a pipeline, and Ottawa gets deep emissions cuts.
