Carney’s speech on the Canada-Alberta pipeline MOU, verbatim

Hello everyone.

It’s great to be back home in Alberta.

Thank you, Deborah, and your team.

I was last with the Calgary Chamber exactly a year ago. Twenty people showed up and Deborah brought cupcakes on a cold Thursday afternoon.

Today, we’re having Alberta beef with over 1,000 business and community leaders on an important day for my home province and our country. Things are definitely looking up.

Calgarians and Albertans have always been bold.

Here, ingenuity is a resource every bit as powerful as what lies beneath our soil.

It’s a mindset that has led to the founding of great Canadian companies – from WestJet to TC Energy to Canadian Natural, to name but a few.

After all, Calgary grew from a fort on the Bow into a global energy capital in one lifetime – proof that when Albertans commit, they don’t just rise to the challenge of the day, they draw entirely new horizons of Canadian possibility.

We’ve never needed that spirit more than now.

The global economy is rapidly changing.

As the United States transforms all of its trading relationships, many of our strengths – based on those close ties to America – have become our vulnerabilities.

Last year, more than three quarters of our exports went to the United States.

Over 90% of our lumber, aluminum, and steel exports.

And over 95% of all our energy exports went to the States.

This tight interdependence, once a strength, is now a weakness.

We estimate that U.S. tariffs and the uncertainty they’re causing will wipe $50 billion from our economy – the equivalent of $1,300 for every Canadian.

And change is happening fast. This is a rupture, not a transition, which means our economic strategy needs to change dramatically and rapidly.

Because nostalgia is not a strategy.

The U.S. has changed. That’s their right.

We must respond. That’s our imperative.

The federal Budget 2025 is the strategy for Canada to meet this challenge and emerge even stronger.

Our plan to unleash one trillion dollars in total investments in Canada over the next five years.

That alone will increase our GDP by over 3.5%, that’s $3,500 for every Canadian worker – twice what the U.S. is taking from us.

The Budget gives us the tools to build Canada strong. It’s a strategy for a Canada that is confident and taking its future into its own hands.

We are catalysing generational investments bycreating the right conditions to get big things built in Alberta and across Canada.

In June, we passed the One Canadian Economy Act to remove federal barriers to internal trade and to fast-track the approvals of nation-building projects.

In August, we opened the Major Projects Office. Headquartered here in Calgary, the MPO is a single point of contact to get nation-building projects built faster.

And we have the good fortune to have Calgarian Dawn Farrell as CEO.

With more than 35 years of experience, including as CEO and Chair of Trans Mountain and CEO of TransAlta, Dawn knows the energy sector, and she knows how to build big.

Thus far, we’ve referred two tranches of major projects to the MPO, representing over $116 billion of investments in LNG, nuclear, hydro, and critical minerals, as well as new trade and energy corridors.

These projects are part of bigger strategies – from unlocking our full potential as an energy superpower to building high-speed rail and pioneering sovereign data and intelligence infrastructure – strategies that will build a better connected, stronger, and more sustainable Canadian economy.

And that’s why I am in Calgary today.

This morning, Premier Smith and I signed a new Memorandum of Understanding. It’s a framework for building more competitive, independent, and sustainable economies in Alberta and across Canada.

Together, we will strengthen federal-provincial collaboration in the energy sector to unlock the full potential of Alberta’s energy resources, achieve net-zero emissions by 2050, and create hundreds of thousands of well-paying careers.

Here’s how.

The Canadian government will enable a clear and efficient approval process for a new, private sector constructed and financed pipeline, with Indigenous Peoples’ co-ownership and benefits. And by working together with a new cooperation agreement, we will maximise the benefits of “one project, one review” for the Alberta portions of any projects.

The pipeline will transport at least one million barrels of low-emission Alberta bitumen a day, with a route that increases access to new Asian markets as a priority.

This enhanced capacity would be on top of a further expansion of the Trans Mountain Pipeline by an additional 300,000 to 400,000 Alberta barrels per day.

These projects can diversify our exports, reduce the discount on current sales to U.S. markets while increasing our independence and prosperity.

To make them possible, our MoU advances the construction of Pathways Plus, recognising that, in order to be competitive over the longer term, energy doesn’t only have to be low cost but also low carbon.

Pathways Plus will be the largest carbon capture, utilisation, and storage project in the world, achieving emissions reductions that are the equivalent of taking 90% of all the cars and trucks off the road in Alberta.

It will make Alberta oil among the world’s lowest-carbon intensity produced oil. And it has the potential to create an entirely new industry in Canada. Just as Alberta did with the oil sands when I was a kid.

The MoU is committed to building in partnership through cooperative federalism.

Cooperation between the federal and Alberta governments.

Cooperation by ensuring that Indigenous economic benefits, partnership, and opportunities for co-ownership are fundamental to every project.

Cooperation by recognising that British Columbians should share substantial economic and financial benefits from projects that impact them.

The agreement between Alberta and Canada is about much more than pipelines. It sets the stage for an industrial transformation.

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  0095 Fast Trucking nearly 70 years good at it
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  0092 Turnbull projects big and small
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  0046 City of Estevan This is Estevan Teaser
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  0087 Lori Carr Coal Expansion
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  0077 Caprice Resources Stand Up For Free Speech
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  0061 SIMSA 2024 For Sask Buy Sask
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  0051 JML Hiring Pumpjack assembly
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  0049 Scotsburn Dental soft guitar
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  0041 DEEP Since 2018 now we are going to build
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  9002 Pipeline Online 30 sec EBEX
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Under this agreement, Canada and Alberta will collaborate on multiple projects to meet growing consumer and industrial energy demand – including through new nuclear power and new interties with neighbouring provinces that increase affordability and resilience while lowering emissions.

We will also work to unlock sovereign AI data centres that create opportunities for Alberta’s and Canada’s burgeoning AI ecosystem, while protecting the independence of our information and algorithms.

As we build big, we will build green.

Our new Climate Competitiveness Strategy is our plan to drive growth while lowering our emissions.

The Strategy will help catalyse hundreds of billions of dollars in investments in nuclear, hydro, wind, storage, and grid infrastructure to position Canada to lead in the low-carbon economy.

Early in the new year, the government will release our new electricity strategy, which will provide the tools and chart the path to double the clean grid across Canada.

When we power our country with clean sources like hydro, wind, solar, and nuclear, we don’t just cut greenhouse gas emissions – we give Canada a competitive edge in the clean economy of the future.

The three main pillars of our Climate Competitiveness Strategy align strongly with today’s agreement:

First, strengthening industrial carbon pricing in Canada to provide long-term certainty for businesses and investors.

Under the MoU, Alberta is committing to strengthen the Tier system, ramping up to a minimum effective credit price of $130 per tonne.

Under the MoU, Canada and Alberta agree to work collaboratively to design and commit to globally competitive, long-term carbon effective prices – giving clarity to Albertan businesses.

Second, in the Budget we expanded clean economy tax credits, in particular through investment tax credits for CCUS, transmission, nuclear power, and interties.

Private companies will also benefit from the Budget’s new Productivity Super-Deduction, which allows for immediate expensing – 100% write-offs – for a wide range of assets.

Importantly, these two measures are stackable, they lower our marginal effective tax rate for investment to 13% and widen Canada’s tax advantage over the U.S. to 4.5%.

The third pillar of our climate competitiveness strategy is to strengthen methane regulations in the oil and gas sector.

Under the MoU, Alberta commits to a 75% methane reduction target relative to 2014 emissions levels.

To provide regulatory clarity, the federal government will remove the emissions cap, once all the mutual commitments under the MoU are fulfilled.

Canada will also take steps to enable the export of bitumen to Asia, including adjusting the tanker ban, if necessary.

And via the MPO and our new cooperation agreement, the Canadian government will ensure efficient, timely regulatory approvals.

The governments of Canada and Alberta acknowledge that all these steps are necessary but not sufficient conditions. Completing a pipeline will also require:

• A private sector proponent.
• Meaningful dialogue and substantial partnership with British Columbia.
• Meaningful engagement and consultation between the federal government, Alberta, B.C., and Indigenous Peoples.
• And opportunity for significant Indigenous ownership and economic benefits.

• 0104 SaskPower SASPO-2907 Hero Video_30sec
  0104 SaskPower SASPO-2907 Hero Video_30sec
• 0102 Lori Carr Coal Extended
  0102 Lori Carr Coal Extended
• 0101 VP Energy Road to adventure
  0101 VP Energy Road to adventure
• 0100 Turnbull Project Manager
  0100 Turnbull Project Manager
• 0099 Mryglod Steel 1080p
  0099 Mryglod Steel 1080p
• 0097 Eagle Sky Ventures LTD
  0097 Eagle Sky Ventures LTD
• 0095 Fast Trucking nearly 70 years good at it
  0095 Fast Trucking nearly 70 years good at it
• 0092 Turnbull projects big and small
  0092 Turnbull projects big and small
• 0046 City of Estevan This is Estevan Teaser
  0046 City of Estevan This is Estevan Teaser
• 0087 Lori Carr Coal Expansion
  0087 Lori Carr Coal Expansion
• 0077 Caprice Resources Stand Up For Free Speech
  0077 Caprice Resources Stand Up For Free Speech
• 0076 Latus only
  0076 Latus only
• 0061 SIMSA 2024 For Sask Buy Sask
  0061 SIMSA 2024 For Sask Buy Sask
• 0051 JML Hiring Pumpjack assembly
  0051 JML Hiring Pumpjack assembly
• 0049 Scotsburn Dental soft guitar
  0049 Scotsburn Dental soft guitar
• 0041 DEEP Since 2018 now we are going to build
  0041 DEEP Since 2018 now we are going to build
• 0032 IWS Summer hiring rock trailer music
• 0022 Grimes winter hiring
• 0021 OSY Rentals S8 Promo
• 0018 IWS Hiring Royal Summer
• 0013 Panther Drilling PO ad 03 top drive rigs
• 0002 gilliss casing services
  0002 gilliss casing services
• 9002 Pipeline Online 30 sec EBEX
  9002 Pipeline Online 30 sec EBEX
• 9001

While we are building our nation, we will also build our communities– new hospitals, public transit, recreational facilities, arts centres – through the $50 billion Build Communities Strong Fund.

Build Canada Homes will work with municipalities to supercharge housing construction using new factory technologies – cutting building times by 50%, reducing costs by 20%, and lowering emissions by 20%.

This work is already underway in Alberta.

In Edmonton, Build Canada Homes has started on one of its first developments by building 355 homes on the Village at Griesbach property.

As we build at home, we are also diversifying our export and investment partnerships around the world.

We are establishing stronger business relationships with new and reliable partners to double our exports outside the United States over the next decade.

That’s $300 billion in new orders for Canadian resources, technologies, and expertise. New jobs for workers here, in Alberta, and across Canada.

Over the past six months, we’ve made deals with the EU, Germany, Sweden, and Indonesia.

Last week, we agreed to launch ambitious free trade talks with India and the United Arab Emirates.

The UAE also committed to invest $70 billion in Canada, a powerful vote of confidence in our economy and the largest foreign direct investment commitment in Canada’s history.

As today’s agreement attests, we know that it is not just what we build – it’s also how we build.

We will build inclusively, in full partnership with First Nations, Inuit, and Métis.

We will build in solidarity with workers, creating good union jobs. The coming decades are going to be a great time to be in the trades.

We will build sustainably, focusing on low-emission energy, transport, housing, and manufacturing to strengthen our competitiveness – because reducing emissions is not just a moral duty, it’s an economic imperative.

Above all, we will build by buying Canadian.

We will be our own best customer.

When we build new ports, mines, and millions more homes, we will build Canadian – with Canadian workers, Canadian steel, and Canadian lumber.

Before concluding, let me be clear that, to catalyse the generational investments we need to grow our economy, we need to transform government to make it more efficient and effective.

That’s why we are spending less to invest more.

After a decade during which federal spending grew more than 8% year-over-year – twice the rate of growth of our economy – we are slashing direct program spending growth to only half a percent annually over the next five years.

We are reducing the size of the public service by 10%. And cutting management consultants by 20%.

Through a series of pragmatic, responsible choices, we will save Canadian taxpayers $60 billionby restructuring operations, consolidating internal services, and rightsizing programs.

We will balance the operating deficit in three years.

We will double capital investments as a share of total spending from its historic average of 4% to almost 9%.

This represents more than $450 billion in capital investments over five years to help crowd in the private investment Canada needs.

While we invest in the future and right-size government, we will be protecting the essential social programs that give every Canadian a fair chance to get ahead.

Including child care, dental care, pharmacare, and the National School Food Program, as well as the health, education, and social transfers on which the provinces and territories rely.

In conclusion – there are two potential responses to U.S. tariffs.

We can hunker down, slash the deficit, turn inward, and – in the words of the Tragically Hip – wait for the ‘trickle down’.

But that would mean getting rid of our key social programs, while not investing in what we need now.

Or we can take risks and invest boldly in our future, as Albertans have done in the past.

I was born just North of the Alberta border, in Fort Smith, at a time when the oil sands were just a concept – a curiosity to most but a few dreamers and builders.

By the time I got to junior high in Edmonton, the oil sands had been transformed into one of Canada’s largest industries, through the brilliance of our scientists, the drive of our entrepreneurs, the support of our governments, and above all, by the dedication of our skilled workers.

That’s the scale of what we can achieve together now.

We used to explore in this country. We will chart new courses again.

We used to build in this country. We will build big, build fast, build bold again.

We used to take risks in this country. We will step up to the plate again.

I’m grateful to Premier Smith for working hard to create these new opportunities for a stronger, more sustainable, more prosperous Alberta and Canada.

And knowing Alberta as I do, I am confident and excited that people in this room and those they represent will take up this challenge to build together with our neighbours, with First Nations to the benefit of all.

It’s our country. It’s your future.

We’re taking back control to build Alberta strong – and Canada strong.

Thank you.