The recently struck memorandum of understanding (MOU) between Canada and Alberta is a high-stakes strategy that risks deepening already deep divides in Canadian politics.
While the MOU touches on a number of issues, at its heart is a shared vision for a new pipeline from Alberta to British Columbia’s protected northern coast.
In effect, the deal offers a quid pro quo: Ottawa agrees to relax a range of federal environmental regulations — including a ban on tanker traffic in B.C.’s north — and to support a pipeline in exchange for a commitment from Alberta to eventually increase the price of carbon on industrial emissions in the province to $130 a tonne.
