Canadian Prime Minister Mark Carney and Alberta Premier Danielle Smith announced a deal on carbon pricing that sets out a schedule for Alberta to increase its headline carbon price from C$95 ($69) per metric ton to C$140 by 2040. The deal also requires Alberta to target an effective C$130 level by 2040, with a minimum price floor that reaches C$110 by 2040.

The pipeline is part of Canada's efforts to diversify exports away from the United States amid U.S. tariffs and uncertainty surrounding the future of the U.S.-Mexico-Canada Agreement. However, many private sector investors believe the dip in U.S.-Canadian relations will end after U.S. President Donald Trump's term concludes, limiting private sector interest in a Pacific pipeline. The deal builds on a 2025 memorandum of understanding reached between Carney and Smith that put aside years of animosity between Edmonton and Ottawa during former Prime Minister Justin Trudeau's time in office.