Canadian Energy Infrastructure

Research evidence excerpt

Canadian Energy Infrastructure

Highlights of the Implementation Agreement between the Canada and

Alberta governments

On May 15, 2026, the Canadian and Alberta governments signed an Implementation

Agreement, which sets out the framework to implement the MOU signed by the parties in

November 2025. Big picture, this agreement confirms both parties’ ongoing commitment to

achieving net-zero emissions by 2050, and sets out a collaborative approach to the most

consequential policies for doing so: industrial carbon pricing and clean electrification.

West coast crude oil pipeline: Advancing the project amid outstanding obstacles

• Ambitious timeline. The Alberta and Canadian governments have agreed on a pathway

to the construction of a new oil pipeline to Asian markets commencing as early as

September 1, 2027. To support this, the agreement contains a commitment by the federal

government to facilitate a prompt review of the province's submission to the federal

Major Projects Office (MPO), so it can be designated as a project of national interest by

October 1, 2026. The Alberta government is planning on submitting its pipeline

application to the MPO on or before July 1, 2026.

• PM Carney: “No Pathways, no projects”. Both the Canadian and Alberta governments

reaffirmed that construction of the oil pipeline project and construction of the Pathways

project are mutually dependent. The parties reaffirmed their commitments to reach an

agreement with the companies jointly advancing the large scale CCUS and emission

reduction initiative project in northern Alberta, with the shared objective of achieving 16

Mtpa of emissions reductions from the project. Specifically, a minimum of 6 Mtpa as the

CCUS project is placed into service by 2035, an additional 5 Mtpa of reductions via a range