Memorandum of Understanding (MOU) Agreement Erodes Last Pillar of Canadian Climate Policy

The International Institute for Sustainable Development argues that a Memorandum of Understanding (MOU) between the governments of Canada and Alberta weakens industrial carbon pricing and undermines Canada's climate commitments by prioritizing oil and gas production.

• The MOU implementation agreement between Canada and Alberta reduces the industrial carbon price, establishing a price floor of CAD 110 per tonne by 2040, which is lower than the advertised CAD 130 and is viewed as insufficient to meet climate commitments.
• The federal government is accused of abandoning climate action by combining the weakened carbon price with plans to build a new bitumen pipeline, expand LNG export facilities, and increase natural gas power generation.
• The shift toward increased oil and gas production is described as a move that increases economic risks, including the creation of stranded assets and energy-driven inflation, while causing Canada to miss investment opportunities in clean energy.

APA

International Institute for Sustainable Development (2026). Memorandum of Understanding (MOU) Agreement Erodes Last Pillar of Canadian Climate Policy. https://www.iisd.org/articles/statement/memorandum-understanding-mou-agreement-erodes-last-pillar-canadian-climate

Chicago

International Institute for Sustainable Development. Memorandum of Understanding (MOU) Agreement Erodes Last Pillar of Canadian Climate Policy. 2026. https://www.iisd.org/articles/statement/memorandum-understanding-mou-agreement-erodes-last-pillar-canadian-climate.

Wikipedia

{{cite press release |author=International Institute for Sustainable Development |title=Memorandum of Understanding (MOU) Agreement Erodes Last Pillar of Canadian Climate Policy |date=15 May 2026 |url=https://www.iisd.org/articles/statement/memorandum-understanding-mou-agreement-erodes-last-pillar-canadian-climate |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{internationalinstituteforsustainabledevelopment2026memorandum, author = {{International Institute for Sustainable Development}}, title = {{Memorandum of Understanding (MOU) Agreement Erodes Last Pillar of Canadian Climate Policy}}, publisher = {International Institute for Sustainable Development}, year = {2026}, month = may, url = {https://www.iisd.org/articles/statement/memorandum-understanding-mou-agreement-erodes-last-pillar-canadian-climate}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }