Canadian Prime Minister Mark Carney has reached a deal with Alberta to establish industrial carbon pricing, paving the way for a pipeline capable of shipping 1mn barrels a day to Asia. The agreement sets emission reduction targets in exchange for the project, which aims to diversify Canada's oil exports beyond the United States. Environmentalists criticize the move as a betrayal of Carney's climate legacy.

Under the tentative pact, a carbon market will target an effective price of C$130 per tonne by 2040, with annual benchmarks. This scales back previous goals of C$170 per tonne by 2030. Alberta's premier claims the revised terms will save the oil industry C$250bn in compliance costs over 20 years. However, oil and gas investors argue the tax is an unnecessary burden during an energy supply crisis.

Carney, who calls for Canada to become an "energy superpower," is doubling down on LNG and crude exports to Asia. The strategy marks a clear pivot from his earlier climate advocacy, drawing resignations and condemnation from former allies. With this deal, the government prioritizes energy security and economic gains from oil sands development over more aggressive near-term emissions cuts, fundamentally reshaping the nation's energy-climate policy balance.