Alberta pushes Ottawa to change climate law before the Grey Cup, as talks intensify over carbon pricing, emissions rules and future pipeline approvals.
Alberta Pushes Climate Law Shift Ahead of Grey Cup Talks
A Pivotal Political Moment Approaches
As the 112th Grey Cup approaches in Winnipeg on Nov. 16, Alberta Premier Danielle Smith says she expects a breakthrough in ongoing negotiations with the federal government over climate and energy policy. The discussions mark the latest phase in a long-running federal-provincial clash over emissions regulation and the future of Canada’s oil and gas sector.
The Provincial Government’s Request
Smith has said she wants Ottawa to rewrite or remove what her government calls “bad laws,” particularly those affecting major energy projects and emissions rules. She has also linked the negotiations to the approval of a new pipeline to British Columbia’s coast and progress on the Pathways Alliance carbon capture and storage network — a proposed 400-kilometre pipeline to move emissions from oilsands sites to a storage hub in eastern Alberta.
What Ottawa Is Signalling in Response
The federal government has indicated it may withdraw a proposed national cap on oil and gas emissions — a flagship policy under former prime minister Justin Trudeau — if provinces and industry commit to strong carbon pricing, methane reduction, and large-scale carbon capture deployment. Finance Minister François-Philippe Champagne said any such step hinges on “conditions being met,” though those conditions have not yet been fully defined.
Alberta’s Carbon Price Freeze Raises Uncertainty
A key sticking point is Alberta’s industrial carbon pricing system, known as TIER. Alberta froze its industrial carbon price at $95 per tonne through 2026, falling below the federal benchmark scheduled to increase to $110 next year and $170 by 2030. Smith has said the price is “open for discussion,” but environmental analysts warn the freeze could weaken long-term investment certainty and slow emissions reductions.
Industry and Environmental Reactions
Major oil companies, including those participating in Pathways Alliance, have said stable carbon pricing and federal support for carbon capture are needed to proceed with multi-billion-dollar investments. Meanwhile, environmental organizations argue that easing regulatory pressure risks higher emissions, increased climate-related disasters, and diminished public accountability.
What Comes Next
Experts say a compromise remains possible, particularly if Alberta strengthens its industrial carbon market. However, future emissions levels will depend on whether the province seeks to expand oil production while attempting to reduce climate impacts. Federal officials say negotiations are ongoing, but no final agreement is guaranteed by the Grey Cup deadline.
