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Carney Signals Climate Pivot to Competitiveness and Carbon Capture Ahead of Budget

Analysts expect the oil‑and‑gas cap to be shelved, signaling a shift to investment‑driven tools.

Overview

  • Energy Minister Tim Hodgson outlined three levers—targeted public financing, faster permitting and regulatory certainty, and AI to optimize energy systems.
  • Hodgson pointed to using tax credits and funding to de‑risk carbon capture, storage and removal projects, citing a new Arca–Microsoft carbon removal deal backed by NRCan programs.
  • The climate competitiveness strategy will be released inside the Nov. 4 federal budget after a planned standalone rollout was delayed.
  • Reporting indicates the government is likely to drop the Trudeau‑era oil‑and‑gas emissions cap and lean on a stricter industrial carbon pricing regime.
  • Coverage describes a potential Alberta “grand bargain” linking pipeline approval to Pathways Alliance carbon‑capture commitments, though analysts question whether industry would follow through and critics fault Ottawa’s sparse messaging.