Hatchet Buried? The Politics of an Alberta Energy Deal

Front Burner – CBC
Date: November 26, 2025
Host: Jayme Poisson
Guests: Jason Markusoff (Calgary correspondent), Rosie Barton (Ottawa correspondent)

Episode Overview

This episode unpacks the major announcement of an energy deal—a Memorandum of Understanding (MOU)—between the federal government led by Prime Minister Mark Carney and Alberta Premier Danielle Smith. The agreement paves the way—at least in theory—for a new pipeline from Alberta to the B.C. coast, contingent upon a series of climate, regulatory, and political hurdles. The discussion delves into the details of the agreement, the deep-rooted tensions between Alberta, Ottawa, and B.C., and the complex web of stakeholders from industry to Indigenous groups. The episode examines whether this deal signals a breakthrough or merely postpones entrenched regional and political conflicts.

Key Discussion Points & Insights

The Energy Deal: Scope and Content

• Not Just a Pipeline Agreement
  • The deal is about more than simply greenlighting a new pipeline; it includes a suite of reciprocal commitments around climate policy and regulatory changes.
  • “A lot of the language from what we understand will be something like this: If Alberta does xyz, Ottawa will do abc.” — Rosie Barton [02:41]
• Alberta’s Climate Concessions
  • Alberta must adopt a new industrial carbon pricing regime.
  • Triggers for Ottawa: removal of federal net-zero clean electricity regulations and the oil and gas emissions cap.
  • Major investment in carbon capture and storage projects (notably the "Pathways Alliance").
  • Possible limited exemption to the ban on oil tankers along B.C.'s northwest coast.
  • Language ensuring Indigenous equity or engagement in the pipeline process and some B.C. support.
• Pipeline Specifics
  • No explicit route but indicates the northwest B.C. coast as the intended destination, similar to the old Northern Gateway proposal, an area with significant Indigenous and provincial opposition.
  • The agreement acts as a roadmap or set of conditions, not an outright approval.

Political Precedents and the “Unlikely Alliance”

• Is This Precedented?
  • Similar province-federal project deals exist (e.g., Quebec on immigration or major projects office agreements), but the scope here is unusual, especially for Alberta.
  • "It is also a remarkable turn of events for Alberta and Ottawa to have reached any kind of understanding about the future of the energy sector...” — Rosie Barton [06:27]
• Comparison to Previous Pipeline Politics
  • Reference to the Trudeau-Notley era and the federal buy-in of the Trans Mountain pipeline, with Alberta trading carbon pricing for pipeline support.

Stakeholder Reactions and Hurdles

B.C. Government and Premier David Eby

• Surprised and Frustrated
  • Eby was “deeply frustrated” at being cut out of initial talks and is demanding B.C. have a seat going forward. [11:11]
  • “This is not something that would happen to other provinces in the federation.” — David Eby [11:19]
• Key Concerns
  • Coastal First Nations must have consent (“Coastal First Nations’ consent and support is required for this conversation.” — Eby [11:53])
  • Strong opposition to lifting the tanker ban: environmental risk, threat to $1.7 billion local industry, and way of life. [12:11]
  • Risk to existing LNG and port projects if Coastal First Nations feel undermined on the tanker ban and oil transport.
  • “We have been very clear that we don’t support this project.” — Marilyn Slett, Chief of the Heiltsuk Nation and President of Coastal First Nations [15:17]

Ottawa’s Position and Liberal Party Dynamics

• Potential Caucus Blowback
  • Some BC Liberal MPs openly oppose the pipeline, but losses after the Trans Mountain pipeline did not materialize as expected.
  • Internal division: former environment ministers caution against more pipelines without maximizing current capacity.
• Climate Politics
  • The deal could give Carney’s government climate “wins,” even if the pipeline is never built.
  • “Whether the pipeline happens or not, there will potentially be some environmental wins here for the federal government.” — Rosie Barton [22:09]
• Skepticism Over Whether Pipeline Will Happen
  • No private company has signed up to build the pipeline yet. The deal may be more about political optics and relationship-mending.

Alberta’s Ambitions & Political Calculus

• Premier Danielle Smith’s Perspective
  • The deal represents a culmination of longtime efforts to remove federal barriers to energy expansion.
  • Smith is expected to tout the agreement as a big win, but the arrangement is fragile and faces skeptical opposition at home.
  • “Danielle Smith will be happy that she’s been able to deliver something…The question is how it plays with her base.” — Jason Markusoff [22:49]
• The Expansive “Pipeline Ambition”
  • Smith wants pipelines in “all directions”—not just to the B.C. coast, but also to the U.S., Churchill, Ontario, and beyond. [17:39]
  • Existing proposals to boost capacity on Trans Mountain pipeline may not satisfy the province’s larger ambitions.

Notable Quotes & Memorable Moments

• On the Complexity of the Deal

  • “If Alberta can do all these things to improve the fight against climate change and get First Nations onside largely and deal with British Columbia’s opposition, the federal government would then, for instance, remove or exempt the tanker ban on that coastline so that a pipeline could be built.”
    — Rosie Barton [04:37]

• Premier Eby’s Exclusion

  • “This is not something that would happen to other provinces in the federation. I don’t know why the thought was that it would be okay for it to happen in British Columbia.”
    — David Eby [11:19]

• Coastal First Nations’ Stand

  • “We have been very clear that we don’t support this project…Our position is not a new position. It’s been in place for many decades and this is our home.”
    — Marilyn Slett [15:17]

• On Pipeline Realism

  • “I do think it’s worth asking the question, is this real?”
    — Rosie Barton [21:24]

• On Alberta’s Separatist Leanings

  • “The base, of course, as we’ve been talking about…has developed these separatist leanings…I’m not sure if she’s going to be able to put all that toothpaste back in the tube and sell them on a memorandum of understanding which some of the people...were already saying is just a memo.”
    — Jason Markusoff [24:21]

Timestamps for Major Segments

• [00:36] – Episode intro and overview of Carney’s “don’t worry about the pipeline” comment
• [02:01] – Breakdown of what’s actually in the Alberta-Ottawa energy deal (Rosie Barton)
• [05:22] – Discussion of precedent and history of federal-provincial deals
• [07:00] – Danielle Smith’s perspective and Alberta’s long-running pipeline quest (Jason Markusoff)
• [10:38] – BC’s reaction, Premier Eby’s anger at being left out
• [11:53] – Eby’s key concerns: First Nations, environmental risk, and the tanker ban
• [15:17] – Marilyn Slett (Heiltsuk Nation) on steadfast Coastal First Nations opposition
• [16:48] – Alternatives proposed: Expanding Trans Mountain capacity vs. new pipeline
• [17:39] – Alberta’s “all directions” pipeline policy ambitions
• [19:09] – Implications for Liberal support in B.C., internal party tensions
• [21:56] – Climate wins for Ottawa even without a pipeline
• [22:49] – How this plays for Danielle Smith and Alberta’s political right

Conclusion

The episode lays bare the intricate, high-stakes chess game unfolding among Alberta, Ottawa, and B.C. over Canada’s energy future. The deal may mark a cooling of hostilities and a shrewd political balancing act: Ottawa gets climate concessions, Alberta gets its pipeline aspirations advanced (if not achieved), and B.C. is left sorting through its exclusion and opposition. Yet, enormous political, legal, and practical obstacles remain, especially with entrenched Indigenous and local resistance on the B.C. coast, and no clear private sector builder in sight. Whether the hatchet is really buried or just hidden until the next crisis remains unresolved.