OTTAWA — Prime Minister Mark Carney and Premier Danielle Smith have reportedly reached an agreement that would see Alberta’s industrial carbon tax rise to $130 per tonne by 2040.CBC News reported the agreement has been confirmed by multiple sources familiar with the matter.Under the reported framework, Alberta’s industrial carbon tax would increase from $95 per tonne to $100 per tonne next year and remain frozen at that level until 2030.The tax would then rise by $3 per tonne annually until reaching $130 per tonne in 2040.The agreement would represent a significant departure from the previous federal benchmark, which had called for carbon tax systems across Canada to reach $170 per tonne by 2030.Both governments are also looking at a fall date for when the Liberal government will designate a pipeline to the British Columbia coast as being in the national interest, according to the National Post. Building a new one-million barrel-a-day pipeline from Alberta to the West Coast has been the biggest talking point of the memorandum of understanding (MOU) on energy between the two sides. Carney is now expected to travel to Alberta on Friday to meet with Smith and announce the updates related to the agreement.According to a report, the exact details of the announcement are still being finalized, but discussions are expected to focus on the proposed pipeline and related negotiations surrounding the industrial carbon tax and carbon capture infrastructure..The expected announcement follows a high-profile meeting between Smith and Carney in Ottawa last Friday, where the Alberta premier signalled growing optimism after weeks of tensions over unresolved parts of the agreement.Before the meeting, Smith warned that Albertans were becoming frustrated by delays.“I know industry is getting a bit impatient. Albertans are getting a little bit impatient,” Smith said in Ottawa last week ahead of the talks.Smith later told reporters she felt significantly more optimistic following the meeting with Carney.“Today Prime Minister Mark Carney and I made significant progress towards reaching an agreement on a West Coast pipeline and carbon pricing,” Smith said Friday.She added that she was now “much more confident” an agreement could be completed before Alberta formally submits its pipeline proposal to Ottawa’s Major Projects Office next month.The MOU between Alberta and Ottawa was first signed last November and has been described by Carney as a “grand bargain” designed to increase oil production while pairing it with emissions reductions through a major carbon capture and storage initiative linked to the Pathways Alliance oil sands project.According to the Globe and Mail, Carney is expected to present an updated plan at a Wednesday cabinet meeting, according to two government sources close to the matter.
