The Globe and Mail reports in its Monday, May 25, edition that the federal government's pipeline deal with Alberta includes a low cancellation fee, raising concerns about the province's commitment once the new oil infrastructure to the West Coast is built. A triple bylined item led by Marieke Walsh reports that the implementation agreement from May 15 outlines conditions for constructing the pipeline, following a November memorandum between Prime Minister Mark Carney and Alberta Premier Danielle Smith that linked the project to an industrial carbon price and a major carbon capture initiative. The agreement includes clauses saying that if Canada or Alberta cancel their carbon pricing regimes or insurance policies (carbon contracts for difference), they assume "sole liability," protecting companies from sudden policy changes that could impact their investments.
That total liability is not explicitly detailed in the agreement but is capped at $1.2-billion, according to the Alberta government. The capped liability acts as an exit ramp for any government that would prefer to pay the fee rather than expose industry to the higher costs it must bear through the new climate plan.
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