Report of looming carbon pricing deal between PM, Premier Smith ‘clears a path’ for a pipeline: Reid

Added: 2026-05-14

[00:00:00]Back to that big story we're tracking.

[00:00:01]CTV News has learned there's likely going to be a deal on carbon pricing between Alberta and the federal government coming up possibly on Friday.

[00:00:09]Could eventually mean that the pipeline to the West Coast will be built. Let's bring in CTV News political commentator Paul Martin, former director of communications.

[00:00:18]Scott Reid, for Paul Martin, you were not prime minister, my friend.

[00:00:23]All those are glorious days the country I forgot that I forgot your time at Rideau at 24 Sussex. Okay, no, you were the communications director for Paul Martin. Your name is Scott Reid.

[00:00:34]>> [laughter] >> Let's talk about this deal and what it means for Danielle Smith and for Mark Carney if it happens the way we think it will play out.

[00:00:42]Yeah, so certainly the buzz has been around since last week when the prime minister and Premier Smith met. She talked about we think we could have a breakthrough on this MOU within days, which suggested that perhaps we should look forward within days.

[00:00:57]Friday would be one week. The buzz as you say sources talking to CTV suggest that the prime minister would be in Alberta and sign it. So that likely means the MOU will be cemented. That clears the way to then open the door to what would be what's called a private sector proponent.

[00:01:15]Long story short, this sets in stage the possibility that we would indeed see a pipeline at least proposed for construction. Then of course you have to deal with where would that pipeline go?

[00:01:26]How do you deal with British Columbia with hereditary chiefs in the BC coast?

[00:01:31]But this would be a first and very significant step. The ultimate goal here of course is a pipeline. Trying to get it built is the tricky part.

[00:01:40]Absolutely. So you have to get the financing, you have to go through regulatory processes, you have to get consensus, you have to get consensus from indigenous communities, you have to get consensus from participating provinces, and from local communities. So that's no small order. On the other hand, Uh, there is a broad consensus within the country uh, that is the United States is turning off the tap with respect to trade, investment, and uh, and the purchase of our oil that we need alternatives, that we need options. We need to be able to take our energy to Asia in order to give ourselves other uh, possibilities. So, uh, that there's much, much, much road to be traveled, uh, but this this step is one that many people didn't think you would see nevertheless, that you would not see a federal government in agreement with a conservative government in Alberta in particular in agreement with Danielle Smith who's been such a forceful critic of the federal government.

[00:02:35]>> Yeah, let [clears throat] me ask you about the significance as well of perhaps Alberta's flexibility here when it comes to industrial carbon pricing.

[00:02:42]So, what we're hearing is the idea of setting $130 a ton by 2040, okay, which is less than what it was supposed to be by 2030. So, in 4 years it was supposed to be $170.

[00:02:57]Now, we're hearing in 14 years from now it would be $130.

[00:03:01]What's the significance there?

[00:03:03]Well, to most of it to most of us it probably sounds like duck soup, but 10 years longer to get to a destination that's $30 less per ton, but nevertheless the government of Alberta would be agreeing to embrace industrial carbon pricing, setting a price on carbon, and the Prime Minister will find that some even perhaps even some from his own party will be critical saying no, you're watering down these measures too much.

[00:03:30]Definitely Premier Smith is going to get some pushback from people who are saying how could you be embracing carbon pricing, but this is the kind of compromise and come together that's going to be necessary if there's any chance of not only building a pipeline, but building the kind of energy infrastructure, the big projects, these things that the Prime Minister has said for a year we need to to because we haven't built them for decades and you know, this is uh, a a working example possibly of the kind of policy compromise required and political compromise obviously. Okay, just quickly before we go, who benefits more from this politically? Do you think this is a bigger win for Cardy or is it a bigger win for Danielle Smith or both?

[00:04:09]Uh both but it's also going to come with some critics for both. I think it's going to be very interesting to see in particular how Pierre Poilievre responds because he's been very critical. His number one beef on the Prime Minister has been well listen, you say things, you sign things but do you do things?

[00:04:24]It's going to be difficult for him to echo that remark this week if Danielle Smith is standing beside the Prime Minister as a conservative premier from the province of Alberta from the oil patch and saying this represents progress. It'll be very difficult for him to rain on it and call it meaningless. I think that politics is going to be very interesting.

[00:04:43]But there will be critics all round on all sides and I think obviously that's been calculated into this this decision. The Prime Minister wants to push ahead. All right, we'll see what happens on Friday.

[00:04:54]Thanks for this Scott.

[00:04:55]Thank you.