Carney government, Alberta strike deal to fast-track building new pipeline by 2027 - Toronto Star

The federal government and Alberta will try to clear the way for construction of a major new oil pipeline to the Pacific coast by September 2027, as part of a new deal that showcases Prime Minister Mark Carney's softer approach to fossil fuel emissions in a bid to boost economic development.

Prime Minister Mark Carney meets with Alberta Premier Danielle Smith at his office in Ottawa on May 8, 2026.

OTTAWA — The federal government and Alberta will try to clear the way for construction of a major new oil pipeline to the Pacific coast by September 2027, as part of a new deal that showcases Prime Minister Mark Carney’s softer approach to fossil fuel emissions in a bid to boost economic development. 

Friday’s “implementation deal” follows the memorandum of understanding signed last November that scrapped, suspended and watered down major national climate policies created under Carney’s predecessor, Justin Trudeau.

Updating that accord, Friday’s deal spells out how Edmonton and Ottawa intend to work together to increase fossil fuel production and get Premier Danielle Smith’s desired million-barrel-per-day pipeline built through British Columbia, with fast-tracked approval under Carney’s controversial major projects regime.

Prime Minister Mark Carney and Alberta Premier Danielle Smith say construction of a new bitumen pipeline to the West Coast could begin as early as Sept. 1, 2027. It's part of a new plan to accomplish the remaining steps of a landmark energy deal they signed last fall — a plan that also includes a new carbon pricing agreement for the province. (May 15, 2026)

Environmentalists panned the deal, with the think tank the Canadian Climate Institute declaring the country’s climate targets under the international Paris Agreement — as well as its goal of “net zero” greenhouse gas pollution by 2050 — will now be “firmly out of reach.” 

Speaking to reporters after a signing ceremony with Smith in Calgary on Friday, Carney said the deal would lead to emissions reductions even with expanded production of oil for a new pipeline, and described the plan as “climate action” combined with “energy security.”

“This is Alberta and Canada coming together,” Carney said. 

When it comes to federal climate policy under Carney sometimes the contradiction is the message.