Canada and Alberta have agreed to encourage investment, boost production in the energy sector and support the construction of a new oil pipeline to the west coast. 

A memorandum of understanding (MoU) has been signed between Canadian Prime Minister Mark Carney and Alberta Premier Danielle Smith to drive their shared goals. 

Under the MoU, Canada and Alberta will collaborate on multiple projects to boost Canada’s economy and meet growing consumer and industrial energy demands. 

Once Alberta’s Government submits a proposal, the Government of Canada will implement an “efficient” approval process to support the development of the new oil pipeline. 

The new pipeline will be funded and built by private sector entities, with provisions for indigenous peoples’ ownership and associated benefits.  

It is set to deliver at least one million low-emission barrels per day to Asian markets. 

Canada Prime Minister Mark Carney said: “In the face of global trade shifts and profound uncertainty, Canada and Alberta are striking a new partnership to build a stronger, more sustainable, and more independent Albertan and Canadian economy. 

“We will make Canada an energy superpower, drive down our emissions and diversify our export markets. We want to build big things, and we are building bigger and faster together.” 

According to a Reuters report, the agreement received support from the oil industry, while environmental groups have expressed criticism. It has led to differing views within the government. 

Canada’s former environment minister, Steven Guilbeault, announced his resignation from the cabinet, citing concerns about changes to the country’s climate plan. 

Prime Minister Carney aims to strengthen the Canadian economy amid uncertainty linked to tariffs imposed by US President Donald Trump. 

The agreement seeks to diversify energy export markets beyond the US, which currently receives 90% of Canada’s oil exports, the report said. 

This partnership also supports the construction of Pathways Plus, claimed to be the world’s largest carbon capture, utilisation and storage project. 

This project is expected to strengthen Canada’s energy sector, reduce emissions, and deliver economic benefits including more than $16bn (C$22.37bn) in gross domestic product and 40,000 jobs annually. 

The MoU also includes provisions for several clean energy projects and initiatives. 

These cover an industrial carbon pricing agreement for Alberta and a target to reduce methane emissions by 75% over the next ten years. 

Canada’s Federal Minister of Energy and Natural Resources, Tim Hodgson, said: “Canada is acting decisively to establish ourselves as a global energy superpower in the face of a changing world. 

“Together, Canada and Alberta will not only export critical energy to our customers, we will also support our allies, create hundreds of thousands of jobs here at home and show that our energy sector can lead on a global stage.”