Canada, Alberta sign MOU to boost energy collab, lower emissions and unlock new export markets

The agreement comes as the United States, Canada’s largest trading partner, undergoes major shifts in trade policy, prompting renewed focus on reducing economic dependence on a single market.

"It’s time to diversify our export markets and transform our economy from one that is reliant on a single trade partner to one that is stronger, more competitive, and more independent," Carney wrote on X.

Federal and provincial officials say the partnership aims to build a more resilient economy, expand responsible energy development and position Canada as a global energy leader.

Under the MOU, the two governments will work with industry on large-scale projects, including Pathways Plus, a carbon capture, utilisation and storage initiative that officials describe as the largest of its kind globally.

According to federal estimates, the project is expected to generate more than $16 billion in GDP and support more than 40,000 jobs annually.

The agreement also commits Ottawa to consider a proposal from Alberta for a privately financed pipeline that would transport at least one million barrels per day of low-emission oil to Asian markets.

The project would require approval under the Building Canada Act and is expected to include Indigenous ownership and benefits.

Additional collaboration outlined in the MOU includes measures to lower methane emissions by 75% over the next decade, expand nuclear energy capacity, reinforce Alberta’s electricity grid to support artificial intelligence data centres, and develop transmission links with British Columbia and Saskatchewan to increase access to low-carbon power.

All projects would be developed in consultation with Indigenous rights holders and neighbouring provinces.