Canada rolls back climate rules in energy deal with Alberta

Canada's Prime Minister Mark Carney signed an agreement with Alberta's premier on Thursday that rolls back certain climate rules to spur investment in energy production, while encouraging construction of a new oil pipeline to the West Coast.



Under the agreement, the federal government will scrap a planned emissions cap on the oil and gas sector and drop rules on clean electricity in exchange for a commitment by Canada's top oil-producing province to strengthen industrial carbon pricing and support a carbon capture-and-storage project.



Carney is counting on the energy sector to help the Canadian economy weather uncertainty from U.S. President Donald Trump's tariffs, and is seeking to diversify from the U.S. market which currently takes 90% of Canada's oil exports.