Ottawa-Alberta "grand bargain” could trade away Canada’s climate framework if firm negotiations don’t follow - Clean Energy Canada

The recent memorandum of understanding (MOU) between the federal government and Alberta on energy policy presents both opportunities and risks for Canada’s climate framework, according to Rachel Doran, executive director at Clean Energy Canada. While the deal includes promising commitments such as Alberta’s pledge to increase its industrial carbon price to $130 per tonne—higher than the federal backstop price scheduled for next year—there is concern that without firm federal negotiations, key federal climate regulations like the Clean Electricity Regulations, oil and gas emissions caps, and methane regulations could be weakened. Doran warns that granting exemptions to one province risks undermining the durability of national regulations, as other provinces may seek similar carveouts. The agreement also highlights potential benefits in electricity infrastructure, including transmission interties between British Columbia and Saskatchewan and commitments to add thousands of megawatts of clean power. This could enhance Canada’s energy security, lower household energy costs, and build on existing renewable strengths such as hydro, solar, wind, and battery storage. However