Much has been said about the Memorandum of Understanding (MOU) between Alberta and Canada that was signed on November 27th 2025. There's no question that the signing of the MOU marked a change in tone and change in the appearance of relations between the governments of Alberta and Canada on perhaps the most contentious areas of policy: energy and climate.

Alberta is revising its industrial carbon pricing system, known as TIER. Large facilities that emit 100,000 tonnes of carbon dioxide equivalent or more of greenhouse gases each year must remain within their allowable emissions limit or, if they exceed it, comply by using credits or purchasing fund payments.