Carney, Smith all smiles while time runs out on climate change

Alberta Premier Danielle Smith and Prime Minister Mark Carney were all smiles last week when they signed an agreement to begin construction of a new oil pipeline by 2027, while also delaying and softening an industrial carbon pricing regime that would apply to producers.

Both Alberta and Ottawa portrayed the deal as a victory: an agreement to fulfil one of Alberta’s principal economic development ambitions while also allowing Ottawa to claim it had agreement from Smith and the oil and gas industry to invest more in carbon capture systems in exchange for less punitive carbon pricing.

Those smiles were evidence both political leaders had erased from their memories a late 2025 report from the Parliamentary Budget Office. The report warned governments of all levels to brace for a rapid rise in the costs of mitigating and repairing damage from severe weather events triggered by climate change.

The PBO projected federal costs related to the Disaster Financial Assistance (DFAA) program, which provides financial support to provinces and territories to help pay for costs related to “natural hazards,” were going to double on an annual basis, starting this year.