Canada Shifts Energy Policy: New Deals, New Controversies

Canada's Prime Minister Mark Carney signed a new agreement with Alberta, altering climate rules to boost energy investment and develop a pipeline to the West Coast. This move, met with mixed reactions, aims to reduce reliance on the U.S., but faces pushback from environmentalists and internal government tensions.

In a significant shift of Canada's energy policy, Prime Minister Mark Carney signed an agreement alongside Alberta's Premier. The deal dismantles some climate regulations to stimulate energy production and encourages constructing a new oil pipeline to the West Coast—a move that has stirred controversy among environmental groups.

The agreement lifts the planned emissions cap on the oil and gas sector while implementing a new industrial carbon pricing structure. The move aims to diversify Canada's oil export base, currently overwhelming reliant on the U.S., undercutting economic vulnerabilities illuminated by U.S. tariffs.

However, this shift has sparked tensions; key cabinet member Steven Guilbeault resigned, objecting to the perceived erosion of Canada's climate efforts. Meanwhile, Alberta explores a new pipeline to Asia, despite opposition from British Columbia and Indigenous groups, marking a contentious step in Canada's evolving energy landscape.

(With inputs from agencies.)