Alberta and Canada signed a landmark Implementation Agreement on Friday to advance the design and construction of a new west coast oil pipeline to as early as Sept. 1, 2027.
The proposed oil pipeline would transport more than one million barrels of oil per day through a strategic port to Asian markets.
Key elements of the Alberta-Canada energy Memorandum of Understanding (MOU), signed in November 2025, were finalized through the agreement as a result of collaboration between the federal and provincial governments.
The governments have agreed to implement several changes to their respective environmental policies that will reduce regulatory uncertainty and create the conditions necessary for Alberta to significantly increase its energy production and exports to Asian and other global markets.
The agreement also allows Alberta to avoid a significant increase to the federally mandated industrial carbon tax to save Alberta’s industry partners about $250 billion over the next two decades to 2050.
“This agreement sends a clear message to investors and global partners that Canada and Alberta are serious about expanding market access, building major infrastructure and creating the conditions for long-term investment in our province’s energy sector. Alberta is ready to build, invest and partner, but we cannot afford to lose another decade. The door is open, and it’s time to turn shared ambition into real projects, jobs and results for Alberta and Canada,” said Premier Danielle Smith at Friday’s ceremony to sign the agreement.
While fully respecting Canada’s duty to consult with Indigenous peoples, the agreement contains a commitment by the federal government to facilitate the prompt review of the Alberta government’s submission to the federal Major Projects Office for a new west coast pipeline so it can be designated as a project of national interest by Oct. 1, 2026, with the intent of obtaining the permissions necessary so that design and construction of the pipeline may commence as early as Sept. 1, 2027.
“Today’s agreement reinforces that Alberta and Canada are lands where the opportunities are plentiful, the rules are clear, and one project means one review. We are building a Canada that works with a more prosperous, sustainable and resilient economy for all,” said Prime Minister Mark Carney.
As work advances, the governments of Alberta and Canada remain committed to respecting constitutionally protected rights, engaging in early, consistent and meaningful consultation with First Nations and Métis communities, and working with Indigenous communities to support opportunities for ownership and other partnerships.
Both governments also remain committed to working together with the Oil Sands Alliance (formerly Pathways) companies to advance the completion of the world’s largest Carbon, Capture, Utilization and Storage (CCUS) infrastructure project.
Under the new carbon pricing agreement, the headline carbon price will be rolled back from $170 per tonne by 2030.
The price of carbon will remain at $95 per tonne for the remainder of 2026, and will increase to $100 per tonne starting in 2027 until 2030. By 2035, the price of carbon will reach $130 per tonne and will increase by 1.5 per cent per year to 2040.