On May 15, Alberta and Ottawa announced updates to their MOU on carbon markets and energy policy, aimed at advancing a greenfield oil pipeline proposal to Asian markets by July 1, with possible construction readiness after September 2027. The agreement lowers industrial carbon compliance costs and introduces a TIER price floor (called a minimum transfer price), although industry groups still argue that costs remain too high. The new framework also introduces additional complexity and uncertainty around carbon markets. While the deal marks progress toward a West Coast oil export pipeline, key uncertainties remain regarding commitments to the Oil Sands Alliance Pathways CCS project, opposition in British Columbia, and the future of the Clean Electricity Regulations (CER).

On May 14, the federal government also announced a national electricity strategy. The strategy includes plans for regional electricity planning, along with proposed measures such as extending the Clean Electricity ITC to certain intra-provincial transmission projects and a plan to consult on added flexibility to the CER.

To help Peter and Jackie unpack this wave of policy announcements and their implications for carbon markets and investment, they are joined by Rachel Walsh, Director and Head of Carbon Strategy and Partnerships at BMO Capital Markets.

Content referenced in this podcast:

Government of Canada, Powering Canada Strong: A National Strategy for an Electrified Canadian Economy (May 14, 2026)
Prime Minister's Office, Canada and Alberta strike agreement to diversify our exports, reduce emissions, and build a stronger economy (May 15, 2026)
Prime Minister’s Office, Implementation Agreement for the Canada-Alberta MOU of November 27, 2026 (May 15, 2026)
Alberta Government, Release on the updates to the Canada-Alberta MOU Agreement (May 15, 2026)
Studio.Energy, Carbon Competitiveness and Canada’s Oil Industry (April 21, 2026)

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