Canada, Alberta to Raise Carbon Price by 2040, Clearing Hurdle for Pipeline

The Alberta and Canada governments are finalizing an agreement to ramp up the province’s industrial carbon price to C$130 ($95) per metric ton by 2040, a key step toward federal support for a new crude pipeline going to the Pacific coast.

The terms were discussed at a federal cabinet meeting on Wednesday, and Prime Minister Mark Carney and Alberta Premier Danielle Smith are expected to announce the deal Friday, according to a person familiar with the discussions. The agreement removes a crucial obstacle to Ottawa backing the province’s pipeline proposal expected next month, but negotiations remain on a carbon capture system for the oil sands.