On Friday, March 6th, the Governments of Canada and Alberta announced they have reached an agreement-in-principle to accelerate the construction of major projects. This agreement introduces a “one project, one review” approach to major infrastructure initiatives in Alberta, aligning with similar co-operation agreements the federal government has signed with Ontario, Manitoba, New Brunswick and British Columbia. The primary goal is to expedite approval processes, creating the investment conditions necessary to develop key infrastructure such as pipelines, energy, and power generation.
The agreement is the first delivered commitment from the Memorandum of Understanding (MOU) signed last November. Under the MOU, both governments committed to negotiating a co-operation agreement on impact assessments by April 1, 2026, to reduce duplication through a single process that respects both federal and provincial jurisdictions. This marks a notable milestone for market participants who have been awaiting progress on MOU deliverables, specifically the carbon pricing equivalency agreement, also due by April 1, 2026.
Draft Co-operation Agreement on Environmental and Impact Assessments
The Draft Co-operation Agreement on Environmental and Impact Assessment between Alberta and Canada acts as a cooperative framework designed to navigate existing legal jurisdictions by establishing a single assessment model. This model prioritizes provincial leadership while avoiding duplicative processes to meet the legislative requirements of both governments.
The framework establishes that Canada will defer to Alberta’s environmental assessment and regulatory processes for projects primarily within Alberta’s exclusive jurisdiction, such as non-renewable natural resource developments. Conversely, for projects on federal lands or involving federal works, Canada will integrate Alberta's requirements into the federal assessment upon request.
The co-operative assessment process is triggered when a proposed project is subject to both federal and provincial impact assessments. To avoid redundancy, the Impact Assessment Agency of Canada (IAAC) and relevant Alberta regulators will develop arrangements outlining roles, responsibilities, and timelines for a unified process. These arrangements must undergo a high-level review by senior officials, specifically the President of the IAAC and the Deputy Minister-level head of the relevant Alberta regulator.
The agreement confirms that any impact assessment within this scope will be completed within a maximum of two years from the receipt of the initial project description. This aligns with the MOU’s commitment to ensuring a two-year timeframe for permitting and approvals.
While this marks a step forward in cooperation, the framework includes a clear understanding that both governments maintain their original legal positions. Specifically, the agreement acknowledges Alberta’s ongoing court challenge regarding the constitutionality of the federal Impact Assessment Act (IAA). By signing this document, Alberta does not formally accept the Act’s constitutionality.
The draft is currently open for public comment until March 27, 2026. Feedback received will inform the final co-operation agreement and its implementation.
This agreement represents a pivotal shift toward the regulatory certainty the private sector has long identified as a primary barrier to investment in Canada. By replacing overlapping reviews with a "one project, one review" approach and a strict two-year timeline, the framework aims to restore investor confidence and clear the path for large-scale capital deployment in Alberta’s infrastructure.
ClearBlue will continue to monitor these developments and update clients as new information becomes available regarding industrial carbon pricing equivalency, MOU commitments, and additional TIER updates.
Contact us for more information about our Market Intelligence packages for the Canadian carbon markets.