• Canada rolls back certain climate rules to boost energy sector investments.
• Prime Minister Carney anticipates US tariffs could result in a $50 billion economic hit.
• The deal includes scrapping emissions caps and incentivizing carbon capture efforts.
• Alberta to strengthen its carbon pricing while exploring new pipeline feasibility.
• Environmentalists criticize the agreement, fearing setbacks for climate change initiatives.

Canada's Prime Minister Mark Carney has signed an agreement with Alberta's premier to roll back specific climate regulations to stimulate investment in the energy sector. Key changes include scrapping a planned emissions cap on oil and gas and dropping regulations on clean electricity, aimed at facilitating new energy projects and enhancing pipeline construction to the West Coast, according to Al Jazeera and South China Morning Post.

Carney has emphasized the importance of the energy sector as a bulwark against economic uncertainty, particularly from US tariffs estimated to affect Canada by $50 billion, translating to a loss of approximately $1,300 per Canadian. The federal government’s relaxed environmental policies, initially set by former Prime Minister Justin Trudeau, are intended to spur economic growth and diversify energy exports beyond the heavily US-reliant market, say officials, as noted in India Times and South China Morning Post.

The agreement with Alberta also includes a commitment to invest in a significant carbon capture project and bolster industrial carbon pricing as a trade-off for relaxed regulations. Carney is counting on these measures to foster a new pipeline to British Columbia's northwest coast, though no private sector commitment for construction has yet materialized, according to Al Jazeera and India Times.

The anticipated changes have sparked criticism from environmental advocates who argue that the rollback of climate regulations could hinder Canada's long-term climate goals. Organizations like the Pembina Institute have warned that this deal risks undermining national climate standards even as the energy sector celebrates the potential economic benefits, as reported by both South China Morning Post and Al Jazeera.

As the federal government also commits to facilitate a clearer approval process for future pipelines, Premier Carney has signaled a shift in Canada’s energy policy towards increasing fossil fuel production in response to external pressures. This move has already incited internal tensions within the government as it diverges from previous commitments to environmental sustainability, according to India Times and South China Morning Post.