Prime Minister of Canada

The world is changing rapidly. In response, Canada’s new government is focused on what we can control: building an affordable, competitive, and sustainable Canadian economy.

To that end, we must build our strength at home and diversify our export markets abroad. To advance these shared missions, in November, Canada and Alberta signed a Memorandum of Understanding (MOU) that unlocks the full potential of Alberta’s energy resources, drives massive new investments in renewable energy, and effectively reduces emissions. The MOU shifts energy and climate policy from rigid regulations to a pragmatic, responsible, and cooperative approach. 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. It will provide certainty to investors, advance meaningful reconciliation with Indigenous Peoples, and maintain a path to net-zero by 2050.

Delivering on these shared commitments, the Prime Minister, Mark Carney, and the Premier of Alberta, Danielle Smith, today announced that Canada and Alberta have reached a landmark Implementation Agreement to diversify our exports, lower emissions, and build a stronger, more sustainable economy for all. Working together, Canada and Alberta will build:

Carbon markets that work

Canada’s carbon credit markets are not working. An oversupply of low-priced credits has weakened incentives and failed to substantially drive down emissions. Establishing a stronger carbon pricing system in high-emitting economies like Alberta also lays the foundation for a credible, scalable national carbon credit market. To achieve this:

• Canada and Alberta have agreed to an effective carbon price of $130 per tonne by 2040.
  • This will be achieved by agreed upon annual benchmarks for the headline carbon price, including $115 by 2030 and $130 by 2035.
  • The headline carbon price will increase to $140 per tonne by 2040.
  • Canada and Alberta have also agreed to annual tightening, or “stringency” rates under the Technology Innovation and Emissions Reduction (TIER) system. These tightening rates will gradually strengthen emissions benchmarks over time.
• Alberta has committed to enforcing a minimum floor price for TIER credits beginning in 2030. This is a critical “insurance policy” that will prevent carbon markets from collapsing and will provide a binding price for investment certainty.
• Canada and Alberta will jointly issue 75 million tonnes of Carbon Contracts for Difference (CFDs) to support emissions-reduction projects, with costs shared equally between Canada and Alberta.

This is a landmark agreement that provides long-term certainty rooted in consistent, effective increases to the price of carbon emissions in Alberta. With reinforcing carbon market measures such as CFDs, carbon prices will be predictable over time and catalyse investment. Together, these measures will help create the long-term certainty needed to advance major projects, grow Canada’s energy sector, and reach net-zero emissions by 2050.

This agreement creates the potential to expand credible, effective carbon markets across Canada, in close collaboration with provinces and territories.

Affordable, reliable, clean electricity 

Further to Canada’s proposed National Electricity Strategy, the federal government will support upgrades to electricity systems across Canada and increase generation – including adding major high-voltage intra-provincial transmission to the Clean Electricity Investment Tax Credit.

In addition, Canada and Alberta agree to:

• Work towards doubling the grid by 2050, including by expanding nuclear, wind, solar, geothermal, and lower-carbon forms of generation – while maintaining the overall stability of Alberta’s grid.
• Launch a joint Electricity Working Group to identify the projects, technologies, and investments needed to achieve net-zero emissions in Alberta by 2050. This includes measures to support grid stability, modernisation, and services for baseload and intermittent power sources, including renewables, storage, interties, intra-provincial transmission, nuclear, and geothermal.
• Better enable investment for renewables and expand supply of electricity for AI and data centre projects.

Electricity is central to Canada’s future and our sustainability. It powers everything we do. By doubling our grid and increasing electrification, Canada’s Electricity Strategy will help ensure Canadians have access to affordable, reliable, and clean electricity as demand continues to grow across the economy.

Diversifying access to global markets

To transport at least one million barrels of low-emission Alberta bitumen a day, increase access to Asian markets, and bolster Canada’s independence and prosperity, the leaders agreed that: 

• Alberta will submit a comprehensive proposal for a bitumen pipeline to Asian markets to the Major Projects Office by July 1, 2026.
• Canada will pursue its designation as a project of national interest, for approval under the Building Canada Act by October 1, 2026, while ensuring that all steps and decisions are fully consistent with its duty to consult Indigenous Peoples and informed by the outcomes of that consultation.
• Canada and Alberta agree to continue engaging with British Columbia on the application and any future development and construction, on interties with Alberta, and on other projects of national interest within British Columbia’s jurisdiction.

The pipeline will be dependent on the Pathways Project, the largest carbon capture, utilisation, and storage project in the world. Canada and Alberta reaffirmed their commitment that the project would achieve 16 million tonnes of annual emissions reductions – the equivalent to taking 90% of vehicles off the road in Alberta – while generating $16.5 billion in GDP, $12.2 billion in labour income, and up to 43,000 jobs annually.

Today’s Implementation Agreement delivers on key commitments under the Canada-Alberta MOU and builds on the agreement-in-principle on methane equivalency and the Co-operation Agreement on Environmental and Impact Assessment reached earlier this spring. A methane equivalency agreement, targeting the end of 2026, will lower emissions of methane in the oil and gas sector in Alberta by 75% below 2014 levels by 2035.

Together, we are strengthening carbon markets, building affordable, reliable, and clean electricity, and getting Canada’s energy exports out to global markets. Rooted in cooperative federalism, this is a pragmatic, united approach to achieve our shared ambitions and create greater prosperity for all Albertans and Canadians.

Quotes

“Today’s agreement reinforces that Alberta and Canada are lands where the opportunities are plentiful, the rules are clear, and one project means one review. We are building a Canada that works with a more prosperous, sustainable, and resilient economy for all.”

— The Rt. Hon. Mark Carney, Prime Minister of Canada

“This agreement sends a clear message to investors and global partners that Canada and Alberta are serious about expanding market access, building major infrastructure, and creating the conditions for long-term investment in our province’s energy sector. Alberta is ready to build, invest, and partner, but we cannot afford to lose another decade. The door is open, and it’s time to turn shared ambition into real projects, jobs, and results for Alberta and Canada.”

The Hon. Danielle Smith, Premier of Alberta

Quick facts

• Today’s announcement builds on recent progress by Canada and Alberta as agreed in the MOU signed in November 2025:
  • In March 2026, Canada and Alberta reached an agreement-in-principle to bring a “one project, one review” approach to major infrastructure initiatives in Alberta. It will create a more streamlined assessment process that delivers major projects faster, reinforces strong environmental protections, and ensures the rights of Indigenous communities are respected.
  • In April 2026, Canada and Alberta signed a Co-operation Agreement on Environmental and Impact Assessment to implement a streamlined and flexible impact assessment process to get major infrastructure built faster.
• Through the Major Projects Office (MPO) the Government of Canada is driving tens of billions of dollars in further investments, while creating the conditions for a better connected, more productive, and ambitious country.
  • Since its launch in August 2025, the MPO is supporting 22 projects and transformative strategies across nuclear, LNG, critical minerals – such as nickel, graphite, and tungsten – and transportation infrastructure. Together, these projects represent over $126 billion in investments in our economy.

Related products

• Backgrounder: Implementation Agreement for the Canada-Alberta Memorandum of Understanding
• Implementation Agreement for the Canada-Alberta Memorandum of Understanding of November 27, 2025
• Canada and Alberta reach agreement-in-principle on methane equivalency
• Canada and Alberta reach agreement-in-principle to accelerate the construction of major projects in Alberta
• Canada and Alberta strike new partnership to lower emissions, unlock our natural resources, and build a stronger, more sustainable, and more competitive economy
• Canada-Alberta Memorandum of Understanding

Associated links

• Impact Assessment Agency of Canada
• Major Projects Office

Note: All times local

Calgary, Alberta

11:35 a.m. The Prime Minister will deliver brief remarks and participate in a signing ceremony with the Premier of Alberta, Danielle Smith, for an implementation agreement to strengthen energy collaboration and build a stronger, more competitive, and more sustainable economy.

Note for media:

• Pooled photo opportunity

11:50 a.m. The Prime Minister will meet with the Premier of Alberta, Danielle Smith.

Closed to media

1:10 p.m. The Prime Minister will meet with unionised skilled trades workers.

Note for media:

• Pooled photo opportunity

1:25 p.m. The Prime Minister will hold a brief media availability.

Notes for media:

• Open coverage

• Media wishing to cover the event are asked to contact media@pmo-cpm.gc.ca to confirm their attendance. Details on how to participate will be provided upon registration.
• Media are asked to arrive no later than 12:30 p.m.

The world is changing rapidly. The United States is upending global trade, wars are ongoing in Europe and the Middle East, artificial intelligence is scaling at speed, and climate change is intensifying. In response, Canada’s new government is focused on what we can control: building an affordable, competitive, and sustainable Canadian economy. Central to this mission is supplying and controlling our own energy.

Electricity is the clear solution to Canada’s energy security, affordability, and competitiveness. Canada already has an 80% clean grid and some of the lowest electricity costs in the G7. As our economy and our industries become more energy-intensive, electricity demand in Canada is expected to double by 2050. This is an enormous opportunity for Canada to build a sustainable, affordable future.

To that end, Canada’s new government is launching a new National Electricity Strategy. This plan will double the capacity of our grid by 2050 and supply clean, reliable, affordable power across the country for decades to come. To develop this strategy, today, we are launching consultations with provinces, territories, Indigenous Peoples, utilities, and unions. Over the next few months, we will work together to identify the actions needed to double our grid most effectively and affordably.

This transformation will not only build a more sustainable Canada, but also a more affordable Canada. Canada’s National Electricity Strategy could deliver up to $15 billion in total energy savings by 2050 and lower total energy costs for 7 in 10 Canadian households. Realising these savings will require a willingness to use a wide range of energy – including natural gas. That’s why we intend to adjust clean electricity regulations to provide the flexibility needed to keep energy costs for all Canadian families reliable and affordable, while reducing emissions and building the clean energy system of the future.

This strategy will require major investments to generate more clean energy, connect our fragmented electricity grids, train and retain tens of thousands of skilled Canadian workers, and strengthen Canadian manufacturing so more of the technologies powering our grid are made here at home.

The strategy will be guided by four pillars:

1. Build the infrastructure needed to double Canada’s electricity generation

   • This will require generational investments in generation, transmission, distribution, storage, and grid modernisation. These new consultations will explore how to most effectively finance the build-out, to spread the costs over time to match the benefits, keeping energy affordable and our country competitive.

2. Connect Canada’s fragmented grids East-West-North through new and expanded transmission lines

   • Canada’s electricity system is currently fragmented across provincial and territorial grids, costing us billions of dollars in outages, duplicative infrastructure, and wasted power. These consultations will tackle common barriers to interprovincial interties so we can unite our grids and deliver more reliable, affordable power to all Canadians.

3. Train, attract, and retain the talent needed to build the grid of the future

   • Doubling the grid will require more than 130,000 high-skilled workers by 2050. Through these consultations, the federal government will work with industry, labour, and training partners to develop solutions to train, attract, and retain the talent needed to build and maintain the grid of the future.

4. Make more of the technologies and components powering our grid here at home

   • As we build the clean economy of the future, Canada’s new government is ensuring our industries can bridge to seize its opportunities. These consultations will explore how to grow domestic manufacturing capacity so that more of the components powering our grid are made in Canada.

As part of our comprehensive focus on affordability, we are also expanding support for energy-saving retrofits for up to one million households through financing, grants, and complementary measures. This includes making it easier for Canadians to transition from expensive propane, oil, and electric baseboard heating to more affordable electric heat pumps.

The work of doubling our grid is already underway. Through the Major Projects Office (MPO), we are advancing clean electricity generation projects – including hydroelectric projects like the Taltson Hydro Expansion in the Northwest Territories and the Iqaluit Nukkiksautiit Hydro Project in Nunavut, nuclear generation projects such as Darlington New Nuclear in Ontario, clean electricity transmission lines like the North Coast Transmission Line in British Columbia, and major wind developments like Wind West in Nova Scotia. To build more transmission intertie projects specifically, we will refer the development of a new comprehensive Transmission InterConnect Investment Strategy to the MPO.

In parallel, we are making Canada the best place in the world to build and invest in clean energy – from the clean economy investment tax credits and other investment incentives, to tightened methane regulations and strengthened industrial carbon pricing. We are accelerating approvals for critical mineral development and low-carbon housing. Through our Climate Competitiveness Strategy, we are unlocking hundreds of billions in investment across nuclear, hydro, wind, solar, and grid infrastructure, while making electric vehicles more affordable for Canadians.

In a more dangerous and volatile world, Canada is choosing to build. Our new National Electricity Strategy will deliver clean, affordable, and reliable energy systems built by Canadians, for Canadians.

Quotes

“In a rapidly changing and more volatile world, Canada is taking control of our future. With our new National Electricity Strategy, we will build at scale and speed to double our grid and power Canada strong with clean, affordable, reliable energy for all generations. When we master energy, we master our destiny.”

The Rt. Hon. Mark Carney, Prime Minister of Canada

“Canada is seizing the moment to drive economic growth and secure our energy future with bold action and ambition. This new National Electricity Strategy complements our government’s efforts to advance major projects in the electricity and energy sectors. With this strategy, we are not just building the grid of the future – we are building a stronger, more competitive Canada.”

The Hon. Dominic LeBlanc, President of the King’s Privy Council for Canada and Minister responsible for Canada-U.S. Trade, Intergovernmental Affairs, Internal Trade and One Canadian Economy

“Canada has a clear advantage: one of the cleanest power grids in the world. Clean electricity is helping fight climate change by cutting emissions. Through the National Electricity Strategy, we are building on that strength to drive innovation, power economic growth, and keep Canadian industries competitive, while creating good jobs and positioning Canada to lead in the global clean energy economy.”

The Hon. Julie Aviva Dabrusin, Minister of the Environment, Climate Change and Nature

“Countries around the world are waking up to the fact that a modern economy needs a modern power grid, and that energy security is national security. When it comes to electricity, Canada starts from a place of strength – but it’s time to build on that so we have a strong, affordable, sovereign grid for years to come. Working alongside provinces, territories, Indigenous Peoples, and industry, we will keep reliability high and bills low as we expand clean power for all Canadians and connect our grids from coast to coast to coast.”

The Hon. Tim Hodgson, Minister of Energy and Natural Resources

“Canada is building a faster, more reliable, and more connected electric grid to strengthen our economy and support Canadian workers and businesses. Our National Electricity Strategy will help attract investment, accelerate electrification, and ensure industries across the country have access to clean, affordable, and reliable power. At a time of rising tariffs and trade uncertainty, we’re investing in Canada’s industrial capacity and economic resilience so Canadian businesses can compete, grow, and lead in the clean energy future.”

The Hon. Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions

“Canadian workers are the foundation of our economic strength. Through the collaborative work of the Workforce Alliances, we will focus efforts on skills training, retraining, and retention to ensure that workers are ready to meet today’s challenges, including in electricity. This builds on the $6 billion investment through the 2026 Spring Economic Update’s Team Canada Strong initiative to recruit, train, and hire skilled trade workers. Together, these efforts create new opportunities, providing the talent needed to double the capacity of our grid by 2050 and supply clean, reliable, affordable power across the country.”

The Hon. Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario

Quick facts

• Today, approximately 80% of all electricity generation in Canada is non-emitting.
• Canada has the lowest residential electricity costs in the G7, the second-lowest industrial electricity costs in the G7 and the OECD, and the second-highest share of clean energy generation in the G7.
• Approximately $3 trillion is spent globally every year on electricity grids, efficiency, and electrification – with clean energy deployment accounting for the majority of new additions to electricity generation. By 2030, renewables are set to contribute the highest share of global electricity generation, according to the International Energy Agency.
• Canada’s new government is already advancing strategic investments in the modernisation and expansion of Canada’s electricity infrastructure, including:
  • Major clean economy Investment Tax Credits, such as those for clean electricity, clean technology, and carbon capture, utilisation, and storage.
  • Strategic financing through the Canada Infrastructure Bank (with a $20 billion clean energy target), the Canada Growth Fund, and the Indigenous Loan Guarantee Program (envelope doubled from $5 billion to $10 billion).
  • Programming targeted at priority areas in the electricity sector, including the $4.5 billion Smart Renewables and Electrification Pathways Program.
  • A new Productivity Super-Deduction – a set of enhanced tax incentives covering all new capital investment that allows businesses to write off a larger share of the cost of these investments right away.
  • The Electric Vehicle Affordability Program, which makes it more affordable for Canadians to buy or lease electric vehicles.

Related product

• Powering Canada Strong: A National Strategy for an Electrified Canadian Economy

Note: All times local

National Capital Region, Canada

10:00 a.m. The Prime Minister will announce a new agenda to deliver clean, affordable, and reliable energy for Canadians.

Third Floor
West Block
Parliament Hill

Notes for media:

• Open coverage

• Media wishing to cover the event must be accredited with the Canadian Parliamentary Press Gallery.