Prime Minister Mark Carney and Alberta Premier Danielle Smith signed a memorandum of understanding (MOU) on Thursday, aiming to position Canada as a global energy superpower and facilitate the construction of a new oil pipeline. The agreement will temporarily suspend clean electricity regulations in Alberta in exchange for an extension of the province's industrial carbon pricing program. Additionally, it includes a commitment from Carney's government to consider modifying the federal oil tanker ban off the coast of British Columbia. Carney stated, "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 MOU outlines several key objectives. Both governments are committed to achieving net-zero greenhouse gas emissions by 2050 while increasing oil and gas production in Alberta to meet national security and export goals. This initiative is expected to create hundreds of thousands of new jobs. The agreement also aims to enhance electrical generation on Alberta's grid, particularly to support AI data centers, while achieving net-zero emissions in the electricity sector by 2050. To streamline project approvals, the MOU seeks to reduce regulatory overlap and establish a maximum two-year timeframe for permitting. It emphasizes the importance of providing Indigenous Peoples with meaningful opportunities for consultation and economic participation. The agreement includes plans for the construction of one or more privately financed pipelines, with Indigenous co-ownership, capable of transporting at least one million barrels of low-emission Alberta bitumen daily. The application for this pipeline is expected to be submitted to the Major Projects Office by July 1, 2026. This new pipeline will complement the expansion of the Trans Mountain pipeline, which aims to increase capacity by an additional 300,000 to 400,000 barrels per day for Asian markets. Other projects outlined in the MOU include the development of the world's largest carbon capture, utilization, and storage (CCUS) project, known as Pathways, to reduce the carbon intensity of Alberta's oil production. The agreement also calls for the construction of significant AI computing power and large transmission interties with British Columbia and Saskatchewan to enhance the supply of low-carbon power to various industries. Alberta has committed to advancing the development of the bitumen pipeline and utilizing the Alberta Indigenous Opportunities Corporation to support Indigenous co-ownership. The province will also extend its Carbon Capture Incentive Program to support the Pathways project and implement a policy framework to attract investments in data center development by July 1, 2026. Canada, in turn, has agreed not to implement the Oil and Gas Emissions Cap and to suspend the Clean Electricity Regulations in Alberta until a new carbon pricing agreement is reached by April 1, 2026. The federal government will also prioritize the Alberta bitumen pipeline as a project of national interest and work to ensure a clear approval process under the Building Canada Act. Both governments plan to engage with British Columbia in discussions regarding the pipeline project and to ensure that Indigenous Peoples in both provinces are meaningfully consulted. They will also collaborate on establishing competitive carbon pricing and addressing regulatory measures that may impact Alberta's industry. The MOU represents a significant step towards enhancing Alberta's energy infrastructure while balancing environmental commitments and economic growth.