November 27,2025
RED FM News Desk
Alberta and the federal government have signed a memorandum of understanding that grants the province specific exemptions from federal environmental rules and provides political backing for a new oil pipeline to the B.C. coast.
Under the agreement, approval for “one or more” privately funded pipelines is linked to the development of a carbon capture, utilization, and storage project in northeastern Alberta. The pipeline proposal is expected to be submitted to the Major Projects Office by Canada Day.
The document includes multiple references to supporting Indigenous “co-ownership” of the pipeline.
The B.C. government opposes the deal. Premier David Eby said it would permit some tanker traffic on the North Coast despite an existing ban. He argued that weakening the ban “is like telling a vegetarian they’re still a vegetarian if they eat a few steaks.”
Coastal First Nations have reiterated their opposition to a new pipeline in their territories and say they are not interested in the economic benefits described by Premier Danielle Smith and Prime Minister Mark Carney.
B.C. Conservative Party Leader John Rustad welcomed the agreement between Alberta and Ottawa, saying he supports a pipeline to the B.C. coast. He added that he was not surprised Premier Eby was excluded from those discussions.
Saskatchewan Premier Scott Moe also expressed support for the deal. The memorandum commits Alberta and Ottawa to advancing a West Coast pipeline and opens the possibility of modifying the coastal tanker ban. Moe said the agreement could allow Canada to boost oil exports and generate more wealth, adding that both Smith and Carney deserve credit for reaching the deal. He also praised the improving relationship between Ottawa and the Prairie provinces.
The agreement would exempt Alberta from federal clean electricity rules and an emissions cap, though the province would face higher industrial carbon levies. Moe said Saskatchewan is also in talks with Ottawa about industrial carbon pricing. He previously halted the collection of those levies in his province but would not say whether Saskatchewan plans to resume collecting them.
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