Key impacts on the Alberta oil sands include:
- Pipeline and Project Approvals (Bill C-5/Building Canada Act): The federal government is moving to designate major oil sands projects as being in the "national interest," allowing them to potentially bypass certain environmental laws (like the Species at Risk Act) under the new Building Canada Act, accelerating approval processes.
- Production Outlook: Despite decarbonization goals, the oil sands are expected to maintain or slightly increase production, with the CER projecting a potential 12% increase by 2034, supported by new export infrastructure.
- Emission Caps and Regulations: While a federal oil and gas emissions cap was originally proposed, the 2025 MOU indicates it may be suspended or altered to favor industry-led reduction efforts. Instead, there is a focus on lowering emissions intensity through Carbon Capture, Utilization, and Storage (CCUS).
