Carney’s New Alberta Pipeline Deal Sparks Political Backlash Across Canada

Canadian Prime Minister Mark Carney’s newly signed agreement with Alberta has set the stage for a major political showdown, as the plan to advance a long-sought oil pipeline to the Pacific quickly ran into opposition from regional leaders, Indigenous groups and environmental advocates. While the deal represents a significant reset in the relationship between Ottawa and Alberta, it also exposes deep national divisions over the future of energy development in Canada.

The agreement allows Alberta’s proposed pipeline to be exempted from several federal climate laws. In return, Alberta has agreed to raise its carbon pricing and pursue what could become the world’s largest carbon capture programme. Alberta Premier Danielle Smith hailed the deal as a turning point for her province, saying it marks the end of “dark times” in which Alberta felt constrained from developing its vast energy resources.

Carney, who has framed the pipeline as essential for national economic growth, said increased access to Asian markets would strengthen Canada’s long-term economic resilience. He also argued that reducing reliance on the United States, which currently buys more than 90 percent of Canada’s crude oil exports, is a strategic priority given recent US protectionist tariff policies.

However, British Columbia’s Premier David Eby quickly voiced his frustration, saying his province was shut out of the negotiations despite being directly affected by the pipeline route. He warned that the project lacks a private investor and does not yet have the support of First Nations communities, both of which are critical obstacles. Eby said BC must now be “immediately” included in talks, noting that Indigenous leaders in the province have already rejected the concept of an oil pipeline to the northern coast.

Tensions escalated further when federal culture minister Steven Guilbeault resigned from Carney’s cabinet. A longtime environmental activist and former Greenpeace campaigner, Guilbeault said he could not support the agreement, which he believes threatens to dismantle the climate action measures he put in place as environment minister. His departure signals the first major political fracture within Carney’s government since the deal was announced.

The memorandum also suspends the federal oil and gas emissions cap and lifts the tanker ban off BC’s northern coastline, both dramatic reversals of the policies introduced under former prime minister Justin Trudeau. Critics say these changes could increase environmental risks and undermine commitments to climate ambition.

The proposed pipeline is still in its early planning stage, with no confirmed route. Alberta has pledged 14 million Canadian dollars to develop a proposal, hoping that a private company will eventually take over financing and construction. Supporters argue that expanding export routes is essential for economic diversification, while opponents worry the project could derail BC’s liquefied natural gas plans and weaken First Nations partnerships.

Conservative leader Pierre Poilievre dismissed the accord as merely the beginning of a long bureaucratic process, noting that Carney once promised to move with “unimaginable speed”. With political, economic and environmental pressures mounting, the future of the pipeline remains far from certain.