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Carson Jerema: Carney ensnares Danielle Smith in pipeline blackmail

Ottawa commits to a pipeline, but only under very narrow conditions

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The “plan” to approve a pipeline, which was detailed by the federal and Alberta governments on Friday, is a perfect example, not of federal-provincial co-operation, but of why Canada can’t build infrastructure. Rather than being subject to market demand, the decision to build or not to build is being driven entirely by politics.

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Alberta Premier Danielle Smith said her government will bring forward a proposal for a new pipeline to the West Coast by July 1, and in return for it being designated a project of “national interest,” the province will raise its industrial carbon tax from $95/tonne to $130/tonne by 2035. While the price of that tax had been a source of tension in the negotiating process, it is possibly the least of the impediments that any new energy project will face.

Carson Jerema: Carney ensnares Danielle Smith in pipeline blackmail Back to video

As outlined in the memorandum of understanding (MOU) signed in the fall between Alberta and Ottawa, any pipeline will be contingent on the development of a massive carbon capture facility, while still being subject to much of the typical — read: project-killing — regulations faced by any other project. Not to mention that it will give anti-energy B.C. Premier David Eby an effective veto.

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