Pathways Plus MOU sets 6 million-tonne CO₂ capture target by 2035, with additional 5 million-tonne steps in 2040 and 2045
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Alberta's Pathways Plus MOU ties oil sands firms' staged CO₂-capture milestones (6Mt by 2035, +5Mt by 2040 and 2045) directly to TIER benchmark tightening, shifting from a uniform standard to performance-linked incentives and penalties. This effectively alters expected compliance costs and capex timing for producers and could influence near-term Canadian heavy oil supply economics, permitting risk, and credit considerations, pending definitive agreements later this year.
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Alberta and the Oil Sands Alliance have signed the Pathways Plus memorandum of understanding, setting staged carbon-capture targets of 6 million tonnes of CO₂ a year by 2035, plus 5 million tonnes in 2040 and another 5 million tonnes in 2045. The deal ties company emissions-reduction milestones to how quickly Alberta’s TIER facility benchmarks tighten, easing the annual tightening rate from 2% to 1% for companies that meet their milestones. Companies that miss their targets would face progressively stricter benchmark adjustments. Final implementation terms are to be set out in a definitive agreement expected to be signed later this year.