Good Sunday Morning! Issue #295

Good Sunday Morning!

As you know, this was a rough week. I had an above average amount of juggling, with competing parliamentary work. Monday, I asked the Prime Minister about cozying up to brutal dictatorships in hopes of trade deals. Tuesday was a real torture test as my amendments to the Strong Borders Act (C-12) were at the same time as my speech on Softwood lumber. My C-12 amendments and similar ones from NDP MP Jenny Kwan went down to defeat. Horribly, the even more Draconian anti-refugee amendments sailed through the Public Safety and National Security (SECU) committee with Conservative and Bloc support. While I spoke on one Zoom link on softwood lumber to the Chamber at 11 pm, I had to hop back to a different Zoom link to get back into SECU for continuation of clause by clause on C-12, ending at midnight. Thursday found me in Kitchener snowstorms, after bus and train from Ottawa, to make the exciting announcement that Mike Morrice has agreed to serve as my Deputy Leader! 

But Thursday, November 27 was overshadowed by the dreadful news coming out of Calgary. Just ten days after making his strong set of commitments on the floor of the House, for climate and reaching our Paris goals, for Nature to protect 30% of Canada’s lands and waters by 2030, to Indigenous rights, the Prime Minister signed a deal with Alberta Premier Danielle Smith. The Memorandum of Understanding between Canada and Alberta was not a surprise. We knew it was coming and knew it would not be good news for climate. But I had no idea how sharp a betrayal it would be. The day before the Calgary signing event, media rumours were swirling that former Environment Minister Steven Guilbeault might quit Cabinet over the M.O.U. I was relieved when Steven, an old friend of mine, told the media he would not leave Cabinet. I inferred that meant he knew what was coming and could live with it. 

It turns out that, Minister Guilbeault only saw the M.O.U. later, on Wednesday night. I learned these details from reporting by Mia Rabson, Canadian Press.

I have no idea how she pulled together such deep detail, including the specifics of negotiations between the Liberal government and me, before they tabled the budget. What I have cut and pasted below is entirely accurate. We worked to meet my demand that there be no new fossil fuel subsidies in the budget. We had kept out “enhanced oil recovery” as available for subsidies in the budget itself, but on Nov 4th, I was shocked by new subsidies for LNG. That is why from November 4-17th I had to try to get more from the government. As you know, I was more than ready to vote “no.”

Guilbeault Resignation Timeline

Here is Mia Rabson’s breakdown of a critical 24-hour period:

Wednesday, Nov. 26: 

Guilbeault received a written copy of the MOU. It included not only the pulling back of multiple regulations to cut emissions, but it also included language extending eligibility for federal investment tax credits to enhanced oil recovery projects.

Originally the federal tax credits excluded enhanced oil recovery, a carbon-storage technology that captures carbon dioxide from industrial emitters and injects it back underground at oilfields. That increases pressure and pushes more oil out of the rock. That carbon dioxide is trapped underground, but it allows for increased production from oilfields.

Adding enhanced oil recovery to tax credits is considered by environmental leaders, including Guilbeault, to be a direct subsidy for oil production, and it was purposely excluded from the original tax credits for that reason.

Guilbeault and Green Party Leader Elizabeth May had both heard rumours before the federal budget was tabled that it was going to amend the tax credits to include enhanced oil recovery.

It was one of the things keeping May from supporting the budget.

Guilbeault got some assurances that would not be in the budget, or added to it after, and was dispatched by the PMO to convince May to vote with the Liberals. She voted with the government on the budget on Nov. 17, the only non-Liberal MP to do so.

Guilbeault wrote to Carney on Wednesday night, informing him that with the MOU as it stood, he could not stay in cabinet.

Thursday, Nov. 27: 

Guilbeault spoke to both Carney and Blanchard in Calgary. He formally resigned his cabinet seat.

I am deeply grateful to my husband, John Kidder for this summary of the M.O.U for GSM subscribers. Following this chart is some of his keen points of of analysis:

WHEREAS  
  • Canada and Alberta remain committed to achieving net zero greenhouse gas emissions by 2050;
  • Alberta and Canada will work together to achieve the shared objective of establishing Canada as a global energy superpower, unlocking the growth potential of Western Canada’s oil and gas (including liquified natural gas (LNG)), renewable energy, critical minerals, and other resources that the world needs;
  • Alberta and Canada recognize their obligations to consult with, and where appropriate accommodate, Indigenous Peoples; and
  • Canada and Alberta are committed to respecting Aboriginal and Treaty rights, engaging in early, consistent, and meaningful consultation with Indigenous Peoples, in a manner that promotes reconciliation, and respects the rights and cultures of Indigenous Peoples while advancing economic opportunities through Indigenous ownership and partnerships.

 

THE OBJECTIVES  
The Governments of Canada and Alberta are focused on achieving the following objectives and have developed the following clear actions towards this goal:
  • Increasing production of Alberta oil and gas to reach Canada’s export and national security goals, creating hundreds of thousands of new jobs, while simultaneously reaching carbon neutrality by, in part, reducing the emissions intensity of Canadian heavy oil production to best in class in terms of the average for heavy oil by 2050.
Increase exports AND reach carbon “neutrality” by 2050

Emission intensity of CDN heavy oil to be “best in class”

  • Increasing electrical generation for consumer and industrial use on Alberta’s electricity grid, including meeting the needs of AI data centres, while simultaneously reaching net-zero greenhouse gas emissions for the electricity sector by 2050.
Increase electricity generation on Alberta’s grid, meet needs of AI data centres, reach net-zero for electricity generation by 2050
  • Creating electricity and energy policies that address consumer affordability, electricity grid stability, economic competitiveness and long-term competitive certainty, that attract Canadian and foreign sources of private sector capital investment.
Electricity and energy policies that attract private sector capital investment
  • Reducing layers of regulatory overlap and simplifying regulatory systems to ensure a maximum 2-year timeframe for permitting and approvals with the goal of shorter project approval timelines where feasible.
Reduce regulatory overlap and barriers, ensure 2-year timeframe for permitting and approvals
  • Providing meaningful opportunity for Indigenous rightsholders to participate in consultation processes and economic opportunities through Indigenous ownership, partnerships and benefits.
Indigenous (co-)ownership, partnership and benefits

 

THE PROJECTS  
  • Construction of one or more private sector constructed and financed pipelines, with Indigenous Peoples co-ownership and economic benefits, with at least one million barrels a day of low emission Alberta bitumen with a route that increases export access to Asian markets as a priority. The application for this pipeline project will be ready to submit to the Major Projects Office on or before July 1, 2026. It is agreed this new pipeline would be in addition to the expansion of the Trans Mountain pipeline for an additional 300,000 to 400,000 barrels per day destined for Asian markets.
One or more pipelines, at least one million barrels per day, to increase access to Asian markets for bitumen

“In addition to” Trans Mountain expansion of 300 to 400,000 barrels per day

Private sector constructed and financed, Alberta proponent

Application “ready to submit” by July 1 2026

  • Construction and financing of the world’s largest carbon capture, utilization, and storage (CCUS) project (Pathways) for the purpose of making Alberta oil among the lowest carbon intensity produced barrels of oil in the world.
Construction and financing of “Pathways” carbon capture, utilization and storage project
  • Construction of thousands of megawatts of AI computing power, with a large portion dedicated to sovereign cloud for Canada and its allies.
AI computing power

Canadian sovereign cloud

  • Construction of large transmission interties with British Columbia and Saskatchewan to strengthen the ability of the western power markets to supply low carbon power to oil, LNG, critical minerals, agricultural, data centres and CCUS industries in support of their sustainability goals.
Transmission interties with BC and Saskatchewan to strengthen “low carbon” power transmission
THE COMMITMENTS  
Alberta commits to:
  • Act as proponent for advancing the development of a bitumen pipeline to Asian markets, that offers the opportunity for Indigenous co-ownership and other forms of economic benefits, for designation and authorization under the Building Canada Act.
Alberta to act as proponent for pipeline
  • In consultation with Indigenous leadership, utilize the Alberta Indigenous Opportunities Corporation (AIOC) to help backstop Indigenous co-ownership of the bitumen pipeline project and, if appropriate, Pathways.
Use Alberta government funds to “backstop” indigenous “co-ownership” of pipeline project and perhaps Pathways
  • Extend the Alberta Carbon Capture Incentive Program (ACCIP) to support Pathways.
Alberta to subsidize Pathways
  • Foster the development of sequestration permitting, worker training, and the capability for Alberta exports of CCUS-related products and services.
Alberta to develop capability
  • On or before July 1, 2026, implement a policy framework to incentivize large investments in data centre development, including incentives for Canadian sovereign computing.
July 1, 2026 – policy framework to incentivize investments in data centres
  • On or before January 1, 2027, collaborate with Canada to develop a nuclear generation strategy to build and operate competitive nuclear power generation that can serve the Alberta and inter-connected markets by 2050.
January 1, 2027 – strategy before to build and operate “competitive” nuclear power plants to serve Alberta and interconnected markets by 2050
  • Collaborate with Canada to significantly increase the intertie transfer capability between the western provinces (with consideration to the northern regions) to build the low carbon generation and transmission grid that supports the growth of low intensity heavy oil, LNG, critical minerals, agriculture, data centres and CCUS industries for export growth and domestic use.
Increase western provincial grid interties to support heavy oil, LNG, CCUS, data centres, critical minerals, agriculture
  • Collaborate with B.C. to ensure British Columbians share substantial economic and financial benefits of the proposed pipeline.
Canada commits to:
  • In consideration for the mutual commitments agreed to in this MOU, Canada will not implement the Oil and Gas Emissions Cap, which has not yet been put into effect.
No oil and gas emissions cap
  • Acknowledge Alberta’s approach to regulating heavy electricity generation emitters through Alberta’s Technology Innovation and Emissions Reduction (TIER) program for Alberta to provide long-term certainty and time needed by industry and innovators to develop the needed CCUS, direct air capture, nuclear infrastructure and other emissions technologies necessary to achieving a net-zero power grid by 2050.
“Acknowledge” Alberta’s TIER Program for regulating heavy electricity generation emitters

Delay emissions reduction to provide time needed by industry Net-zero power grid by 2050

  • 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 on or before April 1, 2026. Upon completion of the new carbon pricing agreement and factoring all other measures to the satisfaction of both parties, Canada will place the CER in Alberta in abeyance.
Suspend Clean Electricity Regulations in Alberta, TIER program to administer new carbon pricing agreement to be reached by April 1, 2026
  • Declare that an Alberta bitumen pipeline to Asian markets as a priority, that offers opportunities for Indigenous co-ownership and economic benefits, is a project of national interest and can be referred to the Major Projects Office for consideration of designation under the Building Canada Act.
Declare Alberta bitumen pipeline for Asian market is a project of national interest and can be referred to Major Project Office
  • Collaborate with Alberta to provide a clear and efficient approval process for the Alberta bitumen pipeline under the Building Canada Act.
Develop joint Canada/Alberta approval process
  • In consultation with Indigenous leadership, utilize Canada Indigenous Loan Guarantee Corporation to help backstop Indigenous co-ownership of the bitumen pipeline project and, if appropriate, Pathways.
Use federal funds through Canadian Indigenous Loan Guarantee program to backstop Indigenous ownership of pipeline and possibly pathways
  • If an Alberta bitumen pipeline is ultimately approved under the Building Canada Act and provides opportunities for Indigenous co-ownership and shared economic benefits, Canada confirms that it will enable the export of bitumen from a strategic deep-water port to Asian markets, including if necessary, through an appropriate adjustment to the Oil Tanker Moratorium Act.
If pipeline approved, “adjust” Oil Tanker Moratorium Act to enable bitumen export from deep-water port
  • Extend federal ITCs and other policy supports to encourage large scale CCUS investments, including Pathways and enhanced oil recovery in order to provide the certainty needed to attract large additional sources of domestic and foreign capital.
Subsidize carbon capture and storage to attract investment capital
  • Work collaboratively with Alberta to design policy supports that enable deployment of nuclear technology, CCUS and energy storage to enable decarbonization of the electricity system, while ensuring its reliability and affordability.
Work with Alberta on policies to support nuclear energy, CCUS and energy storage
  • As outlined in Budget 2025, propose amendments to the Competition Act to remove some of the “greenwashing” provisions that are creating investment uncertainty.
Remove greenwashing provision from Competition Act
  • Undertake to conduct good faith consultations with Alberta on the development and implementation of federal regulatory or policy measures that might impact Alberta industry and the shared goal of making Canada a global energy superpower.
Consult with Alberta on regulatory or policy measures toward the shared goal of making Canada a global energy superpower
Canada and Alberta together will:
  • Canada and Alberta agree to engage with British Columbia immediately in a trilateral discussion on the pipeline project, and during the potential development and construction of the bitumen pipeline referred to in this MOU, and to further the economic interests of B.C. related to their own projects of interest that involve the Province of Alberta including interties. In addition, Canada will work with B.C. on other projects of national interest in their jurisdiction.
Involve BC in discussions, to provide BC share of economic benefits
  • Canada and Alberta also agree to engage meaningfully with Indigenous Peoples in both Alberta and British Columbia on this project, with the involvement of the B.C. Government for engagement with B.C. First Nations.
“Engage meaningfully” with Indigenous Peoples
  • Work collaboratively to design and commit to globally competitive, long-term carbon effective prices, carbon levy recycling protocols, and sector-specific stringency factors for large Alberta emitters in both the oil and gas and electricity sectors through Alberta’s TIER system. The TIER system will ramp up to a minimum effective credit price of $130/tonne. The parties will conclude an agreement on industrial carbon pricing on or before April 1, 2026.
April 1, 2026 – agreement to set “globally competitive” carbon prices

Max carbon price $130/tonne in future

 

  • Examples of issues to be addressed in the new agreement include the date for introduction of the effective price and the price increases over time.
Date for introduction of effective price, price increases to be addressed in agreement
  • This industrial carbon pricing agreement will include a financial mechanism to ensure both parties maintain their respective commitments over the long term to provide certainty to industry, and to achieve the intended emissions reductions.
Pricing agreement to provide certainty to industry and achieve intended emissions reductions
  • Recognizing Alberta’s jurisdiction over the TIER system, Canada and Alberta agree to work co-operatively to ensure the Alberta carbon market functions reliably and provides a predictable basis for decision-making by industry and investors. This includes a shared undertaking that following the completion of this Memorandum of Understanding, the two governments will work co-operatively to ensure the application of Alberta’s carbon pricing system (including pricing and stringency) is adapted to the specific circumstances of the electricity sector, the oil and gas sector, and other large emitters such as fertilizer and cement sectors.
Recognize Alberta’s jurisdiction over carbon market
  • Enter into a methane equivalency agreement on or before April 1, 2026, with a 2035 target date and a 75% reduction target relative to 2014 emissions levels.
April 1, 2026 – agreement for methane reduction 75% below 2014 by 2035
  • Work cooperatively with the Pathways partner companies to develop and enter into a tri-lateral MOU on or before April 1, 2026 for a multi-phased approach to delivering a set of emissions savings projects (the “Phase 1 Pathways Projects”), focused predominantly on carbon capture and storage, solvent-based replacements or other actions taken by Pathways that reduce emissions intensity. The Phase 1 Pathways Projects will be built and commence operations in a staged manner between 2027 and 2040 to achieve committed emissions reductions at date-certain intervals. Canada and Alberta agree this tri-lateral MOU and the approval and commencement of the initial Phase 1 Pathways Projects will be a precondition to the commencement of the approved bitumen pipeline referred to in this MOU.
April 1, 2026 – MOU (Alberta, Canada, Pathways) for carbon capture and storage, solvent-based replacements or other actions to reduce emissions intensity, MOU a precondition to commencement of pipeline.

Pathways to be built between 2027 and 2040.

  • Canada and Alberta agree that the approval, commencement and continued construction of the bitumen pipeline is a prerequisite to the Pathways project, including the extension of the Alberta ACCIP Program.
No Pathways without pipeline
  • Canada and Alberta agree that the Pathways Project is also a prerequisite to the approval, commencement and continued construction of the bitumen pipeline, given that the two projects referred to in this MOU are mutually dependent.
No pipeline without Pathways
  • Canada and Alberta agree that in order to hold all parties to account for all phases of the Pathways projects, the trilateral MOU with Pathways must include effective enforcement mechanisms to ensure the completion of all phases of the infrastructure and the associated emissions reductions by the Pathways companies as outlined in the MOU. Such mechanisms could include, but are not limited to, tax and regulatory measures.
Enforcement mechanisms (tax, regulations) to ensure completion of Pathways infrastructure and associated emissions reductions.
  • Canada and Alberta agree to work collaboratively, including with other provinces where appropriate, to develop domestic carbon capture supply chains and Canadian steel and pipe production supply chains.
Develop domestic supply chains for Canadian steel and pipe
  • Negotiate a cooperation agreement on impact assessments on or before April 1, 2026, that reduces duplication through a single assessment process that respects federal and provincial jurisdictions.
Co-operative impact assessment agreement by April 1 2026
  • Work cooperatively to streamline the regulatory processes among federal agencies, the Canadian Energy Regulator, the Alberta government and municipalities to achieve a maximum 2-year timeframe for approvals while targeting shorter approval timelines where feasible.
Set maximum 2-year window for approvals, shorter if possible
  • Work cooperatively with Indigenous parties in Alberta to consult and accommodate on the CO2 pipeline and capture and storage facilities related to Pathways.
Work with Indigenous parties on Pathways pipeline and storage facilities
  • Continue to work together to achieve the objectives set out in this MOU.
  • Establish a communications protocol whereas each party must agree to public communications of this MOU and its content prior to information being released.
IMPLEMENTATION COMMITTEE  
Canada and Alberta will appoint an Implementation Committee responsible for delivering the following outcomes:
  • A carbon pricing equivalency agreement on or before April 1, 2026.
April 1, 2026 – carbon pricing agreement
  • A methane equivalency agreement on or before April 1, 2026.
April 1, 2026 – methane agreement
  • A tri-lateral MOU with the Pathways companies on or before April 1, 2026.
April 1, 2026 – MOU with Pathways companies
  • A cooperation agreement on impact assessments by on or before April 1, 2026.
April 1, 2026 – agreement on impact assessments
  • Determining the means by which Alberta can submit its pipeline application to the Major Projects Office on or before July 1, 2026.
July 1, 2026 – means for Alberta to submit pipeline application
  • Acquiring feedback from the federal government for Alberta’s policy framework for AI data centres which is to be finalized by Alberta on or before July 1, 2026.
July 1, 2026 -Alberta’s policy framework for AI data centres
  • Collaborating with Alberta on the design of Alberta’s nuclear power generation strategy which is to be finalized by Alberta on or before January 1, 2027
January 1, 2027 – Alberta’s nuclear power strategy finalized

Sharing John’s thoughts on how much the M.O.U. defied some of our secret thoughts of what might be Carney’s strategy.

I have been hoping against hope that Carney had a deep and secret strategy to gull Smith into wasted and ultimately futile effort. But the MOU has put that hope far far away.

It’s not just the pipeline – just the Haida, let alone other First Nations, will kill the idea of a northern shipping route (along with potential insurance risks for sure). But he also committed to

  • boosting capacity in the existing Trans-Mountain pipe,
  • building nukes in Alberta for AI data centres to sell resulting “clean” electricity to BC – this is Tim Hodgson at work – he’s the nuclear guy in cabinet
  • increasing subsidies for carbon capture for use in expanding tar sands production,
  • loud noises about net zero by 2050 with not a whisper about our Paris commitments to not use up the world’s carbon budget (without which net zero is a useless marketing fantasy),
  • removing the “greenwashing” limits that forced companies to at least pretend to disclose climate risks,
  • using federal and provincial funds through Indigenous financing so that they can be “co-owners”, thus greatly reducing the risk for any “private” proponent
  • suspending the Clean Electricity regulations to enable Alberta to keep using fossils for electrical generation, rather than the abundant solar and wind to which (Prime Minister) Smith is so ideologically opposed
  • killing the oil and gas emissions cap in exchange for Alberta eventually charging. price for carbon
  • making simply the agreement on a deal for CCUS a precondition for moving on a pipeline, not on CCUS actually proving out
  • streamlining and “working jointly with Alberta” to remove conditions and regulations that cause uncertainty for investors

Thanks to John… and sharing clips from my other work this week- including the summary on why I will be voting against bill C-15, the Budget Implementation Act:

Monday, November 24th:

Question Period

Map video about Hecate Strait

Tuesday, November 25th: 

Press Conference with Irwin Cotler: Human Rights Group Discusses Situation in Sudan – November 25, 2025 | Headline Politics | CPAC.ca

Statement on Gender Based Violence

Thursday, November 27th:

Bill C-15 Speech

Sorry for the whirlwind letter- Please take out your pens, or more likely computers! And write to Liberal MPs and every newspaper you can think of and demand action on climate change, respecting Indigenous Rights. We must not allow an exhausted and overwhelmed media to continue to report that Canadians do not care. Raise hell. Demand to know how our PM plans to achieve the Paris targets he committed to on November 17th. Let them know British Columbians will defend our coastline and stand in solidarity with Indigenous Nations.

This is our moment to raise holy Hell.

And so, I close out Good Sunday Morning for November.

Please mark your calendars, if you live near me, to join the Saanich-Gulf Islands Green Christmas party at Star Cinema, Sidney, for a fun Green private showing of “It’s a Wonderful Life”! Sunday December 14 at 4 pm!

Please stay safe and well,

And please join me in re-doubling our efforts!

Love

Elizabeth