CALGARY — The new energy agreement signed by Ottawa and Alberta on Friday saw a target date of September 1, 2027, for construction approval on a BC coast oil pipeline and Premier Danielle Smith agreeing to a carbon tax of $130 per tonne by 2035.While there are mixed feelings from multiple sectors over the issue, the announcement represents one of the most consequential shifts in energy policy Ottawa has made in years and could represent a major victory for Smith’s UCP government in light of numerous cancellations of oil and gas projects in recent years, such as the Keystone XL pipeline.Many energy and political figures have applauded the prospect of a new pipeline to the West Coast, however, critics are pointing out the agreement comes with major concessions — particularly the carbon tax, which some are saying is a sign of capitulation.“Politicians should be getting rid of carbon taxes, not hiking them,” said Franco Terrazzano, federal director of the Canadian Taxpayers Federation (CTF), in a statement..“It doesn't matter how politicians dress up their carbon taxes, all carbon taxes make life more expensive and make Canadian businesses less competitive.“The carbon tax hike is a certainty, a pipeline is a maybe.”The criticism of the carbon tax was a sentiment shared by the federal Conservative Party, with Tory leader Pierre Poilievre also saying “Conservatives want a pipeline without a carbon tax, not a carbon tax without a pipeline.”While the agreement gives a date for construction approval, government officials admitted on Friday the pipeline would not be operational until 2033 or 2024 if the regulatory process goes according to plan.“I want to recognize the hard work that Premier Smith is putting in to fight for the good people of Alberta. After 11 years of Liberal anti-resource development policies, she is working to minimize the damage federal policies are doing to her province,” Poilievre said in an official statement.He added that Prime Minister Mark Carney has so far kept every anti-resource development law from former Prime Minister Justin Trudeau’s regime, including the West Coast tanker ban and the industrial carbon tax.“[Carney’s] industrial carbon tax alone will drive costs up and jobs south,” Poilievre said..Poilievre proposed a four-point plan for a pipeline without a carbon tax, which included: scrapping the tax, approving a pipeline submission within 100 days of it being submitted, beginning construction by the end of 2026, and publishing a plan laying out oil production “to grow by 2.5 million barrels per day.”Shadow Minister for Natural Resources Shannon Stubbs added that while Canadians should be grateful for Ottawa and Alberta’s effort to deliver a pipeline, Carney had promised Canadians a pipeline to the Pacific “as far back as 10 months ago.”.“The maintenance of an escalating federal industrial carbon tax on Canadian producers, businesses, and exporters that global competitors like the US do not self-inflict federally, which will hike costs for everything and will slow down oil and gas production and pipelines, according to all of the proponents,” Stubbs said, adding there is “still no private sector proponent willing to propose or build a Pacific pipeline, no actual construction start or end dates because there's no proponent, no selected route(s), no federal Indigenous consultation, and no permits.”.Candace Laing, president and CEO of the Canadian Chamber of Commerce, praised the agreement as a major step toward restoring investor confidence in Canada’s energy sector.“When we feud within the federation, we send the message that investors should pursue business opportunities elsewhere. When we unite, we invite investment back,” Laing said, adding the agreement creates long-term certainty for industry and could help unlock major private-sector investment.Laing also argued Canada now has a “once-in-a-generation opportunity” to expand its role in supplying global energy and resources amid growing geopolitical instability.Environmental groups have condemned the agreement as a major rollback of Canada’s climate agenda..Environmental Defence accused Prime Minister Mark Carney of weakening key climate policies in exchange for Alberta’s support on industrial carbon pricing.“This agreement is capitulation dressed up as a compromise,” said Aly Hyder Ali, senior program manager for oil and gas at Environmental Defence.“Prime Minister Carney has given free rein to polluters, made more room for fossil fuel expansion, and has put taxpayer money behind economically and environmentally risky projects.”
