Oil Sands Alliance Statement on Canada and Alberta Agreement
The Alberta and Canadian governments announced their bilateral agreement on the implementation of a revised industrial carbon tax and other matters related to the Memorandum of Understanding (MOU) dated 27 November 2025. Oil Sands Alliance welcomes the additional clarity provided by this agreement and is carefully reviewing it.
The governments of Alberta and Canada announced a bilateral agreement on the implementation of a revised industrial carbon tax and other matters related to a Memorandum of Understanding dated 27 November 2025. Oil Sands Alliance welcomes the additional clarity provided by this agreement and is reviewing it carefully.
The disclosed industrial carbon tax, while lower than the existing tax, continues to impose non-competitive costs on Canada's oil sands sector. No other major oil-producing country faces a comparable tax.
The MOU targets reducing the carbon emissions intensity of Canada's heavy crude oil production to best-in-class levels by 2050 in terms of heavy crude oil average. As stated in Canada's 2025 budget, Canada's oil sector's carbon emissions intensity is already below the global average.
Oil Sands Alliance President Kendall Dilling stated: "Oil Sands Alliance is committed to advancing the Pathways carbon capture and storage project, provided that the necessary regulatory and financial conditions are in place to support the project and new oil sands growth in Canada. An industrial carbon tax merely adds non-competitive costs to the sector on top of the costs of the carbon capture project."
While today's announcement has provided further clarity on the industrial carbon tax and next steps regarding a strategic oil pipeline project to Asian markets between the two governments, it is critical that comprehensive regulatory and financial frameworks be implemented to ensure the sector's long-term competitiveness and production growth and to attract the billions of dollars needed to fill future pipelines. We have submitted concrete proposals to both governments on regulatory and financial frameworks to achieve these objectives.
We fully support the shared vision of the Prime Minister and Premier to make Canada an energy superpower and increase Alberta oil production. As we review the details of the announced agreement, we look forward to working constructively with both governments at a trilateral table to lay the foundation for realizing this vision.
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