Canada and Alberta Sign Landmark Partnership to Accelerate Clean Energy, Resource Development, and Economic Growth

Canada and Alberta partnership sets a new national blueprint to lower emissions, expand energy exports, and strengthen economic competitiveness.

CALGARY — The federal and Alberta governments have signed a sweeping new memorandum of understanding (MOU) that lays the foundation for one of the most significant federal-provincial energy collaborations in decades, aimed at lowering emissions, expanding resource exports, and strengthening Canada’s competitiveness in a rapidly shifting global economy.

Prime Minister Mark Carney and Alberta Premier Danielle Smith signed the agreement in Calgary on Wednesday, establishing a framework to advance major projects, modernize carbon pricing, accelerate clean energy deployment, and unlock private investment across the province’s resource and industrial sectors.

The partnership arrives at a moment of intense global volatility, with the United States reshaping trade relationships and Canada seeking to diversify export markets, reduce dependence on a single trading partner, and secure long-term economic resilience.

Transforming Canada Into an “Energy Superpower”

Both governments emphasized shared priorities: diversifying export markets, advancing clean technology, scaling up responsible resource development, and strengthening industrial competitiveness.

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.

That’s the mission Premier @ABDanielleSmith and I just committed to advancing, together. pic.twitter.com/oghYgdmAu0

— Mark Carney (@MarkJCarney) November 27, 2025

Under the new MOU, Canada and Alberta will collaborate to:

• Advance Pathways Plus, which would become the world’s largest carbon capture, utilization, and storage (CCUS) project, generating more than $16 billion in GDP and 40,000 jobs annually.

• Begin a streamlined approval process — pending Alberta’s proposal — for a privately financed, Indigenous-owned pipeline capable of transporting at least one million barrels per day of low-emissions oil to Asian markets.

• Strengthen Alberta’s industrial carbon pricing system.

• Reduce methane emissions by 75% over the next decade.

• Expand Alberta’s clean energy capacity, including advancing competitive nuclear power, large-scale grid transmission links with B.C. and Saskatchewan, and powering sovereign AI data centres with low-carbon electricity.

All projects will require full consultation and partnership with Indigenous rights-holders and neighbouring jurisdictions.

A Blueprint for Energy, Jobs, and National Competitiveness

Ottawa and Alberta framed the MOU as a response to global economic changes and mounting pressure on Canada’s strategic sectors. The framework is designed to accelerate private-sector investment and secure “hundreds of thousands” of new high-paying jobs as the country moves toward a net-zero economy.

Prime Minister Carney stated the agreement positions Canada to “build big things” and build them “bigger and faster together,” underscoring the shared resolve to develop Western Canada’s resources while lowering emissions.

Minister of Energy and Natural Resources Tim Hodgson called the partnership a decisive step toward establishing Canada as a global energy superpower, supporting allies abroad while generating major economic gains at home.

Unlocking the Potential of Western Canada’s Resources

The MOU emphasizes that Alberta’s energy sector — both conventional and clean — is central to Canada’s long-term economic strength. The agreement outlines coordinated federal-provincial efforts to adapt to global market conditions, meet rising international energy demand, and ensure that Canadian products remain globally competitive in a low-carbon future.

The partnership also aligns with Canada’s broader transformation strategy, which includes major project review reforms and efforts to diversify trade and investment beyond the United States.

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