Ottawa-Alberta carbon price, pipeline deal will have $1.2-billion liability cap critics say is too low
The federal government's pipeline deal with Alberta includes a $1.2-billion liability cap that critics argue is insufficient. This cap is intended to ensure compliance with the carbon pricing regime but may not deter future governments from altering policies. Concerns have been raised that the low cap could undermine investments in emissions-reducing technologies.
- ▪The pipeline deal includes a cancellation fee capped at $1.2 billion.
- ▪Critics believe the cap is too low to ensure compliance with the carbon pricing regime.
- ▪The deal stems from a memorandum of understanding between Prime Minister Mark Carney and Alberta Premier Danielle Smith.
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Open this photo in gallery:Prime Minister Mark Carney signs an MOU with Alberta Premier Danielle Smith in Calgary, in November, 2025.Jeff McIntosh/The Canadian PressShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountThe federal government’s pipeline deal with Alberta includes a cancellation fee that critics say is too low to ensure the province holds up its end of the bargain once the new oil infrastructure to the West Coast is built.The implementation agreement, released on May 15, sets out the conditions under which a new pipeline will be constructed.
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