Ottawa-Alberta deal continues to strangle energy sector with climate red tape
The recent agreement between Ottawa and Alberta aims to advance a new oil pipeline while imposing a higher carbon tax and supporting a costly carbon-capture project. This deal is expected to diminish the competitiveness of Alberta's energy sector, making it less attractive to investors. As a result, investment in Alberta's oil and gas industry may continue to decline, further pushing production to regions with less stringent regulations.
- ▪The agreement will raise Alberta's effective carbon tax to $130 per tonne by 2040.
- ▪Investment in Alberta's oil and gas sector has fallen by 61 percent from 2014 to 2024.
- ▪The Pathways carbon-capture project requires over $24 billion in industry investment before 2030.
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Open this photo in gallery:A section of the Syncrude oil sands facility near Fort McMurray, Alta., in April.Jeff McIntosh/The Canadian PressShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountJulio Mejia and Elmira Aliakbari are analysts with the Fraser Institute.The governments of Prime Minister Mark Carney and Alberta Premier Danielle Smith reached an agreement last week on the next steps for a potential new pipeline that could connect Alberta oil and gas to Asian markets.
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