Canada and Alberta province agree on plan for pipelines, CCUS, and nuclear

Canada’s federal government has released a new energy plan in partnership with the province of Alberta that outlines support for a new oil pipeline, a major carbon capture project, and the development of nuclear power for data centers (Federal Government statement, 27/11/2025).

The document commits federal backing for one or more new oil pipelines with Indigenous co-ownership, designed to transport at least 1 mb/d of Alberta bitumen, with a route that prioritizes expanded export access to Asian markets. The application for the pipeline project, developed in addition to the expansion of the Trans Mountain pipeline by 300-400 kb/d, will be ready to submit to the Major Projects Office by 1 July 2026.

It further pledges to "suspend immediately the Clean Electricity Regulations (CER) in Alberta pending a new carbon pricing agreement, which includes the electricity sector, administered through Alberta’s TIER program to be negotiated by the parties" by 1 April 2026. Moreover, the plan confirms that "Canada will not implement the Oil and Gas Emissions Cap" on the Alberta oil and gas sector. Canada will also "extend federal ITCs and other policy supports to encourage large scale CCUS investments, including Pathways and enhanced oil recovery"; The Phase 1 Pathways Projects will be built and start operations in phases between 2027 and 2040 to achieve committed emissions reductions at date-certain intervals. 

The strategy also includes commitments to develop a nuclear power strategy by the end of 2026, a data center strategy for Alberta, and to significantly expand electricity transmission links between western Canadian provinces. Finally, the government reaffirms its commitment to achieving net-zero emissions in the energy sector by 2050.