Canada and Alberta Strike New Partnership to Lower Emissions, Unlock Our Natural Resources, and Build a Stronger, More Sustainable, and More Competitive Economy
December 10, 2025
The world is changing rapidly. The United States, the world’s largest economy, is fundamentally reshaping all its trade relationships, causing major disruption and upheaval for Canadians. It is time to transform our economy from one that is reliant on a single trade partner to one that is stronger, more independent, and resilient to global shocks. To these ends, Canada and Alberta share the same ambitions: diversify our export markets, make Canada an energy superpower, and build a stronger, more sustainable, more competitive economy.
On November 27, Prime Minister Mark Carney and Alberta Premier Danielle Smith signed a memorandum of understanding (MOU) to drive their shared missions. This framework for an agreement will strengthen federal-provincial collaboration in the energy sector to achieve net-zero emissions by 2050, unlock the full potential of Alberta’s energy resources, and create hundreds of thousands of new high-paying careers for Canadians.
The MOU is built on practical solutions: stronger, more effective industrial carbon pricing, major private sector investments in clean technologies, and expanded, responsible energy development for the workers and communities who rely on it.
Under this partnership, Canada and Alberta will collaborate on multiple projects to build Canada’s economy and meet growing consumer and industrial energy demands. It will advance the construction of Pathways Plus – the world’s largest carbon capture, utilisation, and storage project. The project will strengthen Canada’s energy sector, reduce emissions, and deliver substantial economic benefits, including more than $16 billion in GDP and more than 40,000 jobs annually.
Upon receipt of a proposal from the Government of Alberta, the Government of Canada will provide a clear and efficient approval process under the Building Canada Act for the construction of a new pipeline – to be financed and constructed by the private sector, with Indigenous Peoples’ ownership and benefits. It would transport at least one million low-emissions barrels per day to Asian markets as a priority. As a prerequisite to this project, Pathways Plus means Alberta would export some of the lowest carbon-intensity oil produced in the world.
The MOU also advances multiple ambitious clean energy projects and measures that will improve affordability, attract foreign and private investment, and build a more sustainable economy. This includes a strong industrial carbon pricing agreement for the province and an agreement to lower methane emissions by 75% over the next decade. It will also drive initiatives that will enable Alberta to build and operate competitive nuclear power generation, reinforce Alberta’s electricity grid to power sovereign AI data centres, and build large transmission interties with British Columbia and Saskatchewan to better supply low-carbon, low-cost power across the three provinces.
This MOU outlines what Canada and Alberta can build – and how they can build. These projects will only be built in consultation and partnership with Indigenous rights-holders and British Columbia. They will create unprecedented opportunities for Indigenous co-ownership, partnership, and economic benefits.
Facing profound global uncertainty, Canada and Alberta are focused on what we can control: building a stronger, more sustainable, more competitive economy together. Through this MOU, the partners will work within their respective jurisdictions to reach carbon neutrality, unlock the full potential of Western Canada’s resources, and position Canada as a superpower in both clean and conventional energy.
Quotes
“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’re building bigger and faster together.”
The Rt. Hon. Mark Carney, Prime Minister of Canada
“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.”
The Hon. Tim Hodgson, Minister of Energy and Natural Resources
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The world is increasingly dangerous and divided. Changes in the global trading system are causing massive disruptions and uncertainty for Canadians. In addition to that upheaval, business investment has been flat in Canada for a decade. This has caused productivity to grow by only 0.3% annually during that time – lagging behind the majority of our G7 partners. This has weighed on wages, job creation, and Canada’s prosperity.
