Prime Minister Mark Carney and British Columbia Premier David Eby have unveiled the Canada–British Columbia Cooperative Prosperity Agreement, a wide-ranging economic deal designed to fast-track major infrastructure, energy and resource projects across the province. According to the federal government, the agreement could unlock more than $200 billion in new investment while strengthening Canada’s economic growth and trade capacity.
One of the most closely watched elements of the agreement concerns future pipeline development. The memorandum of understanding confirms that the northern oil tanker ban will remain in place, meaning any pipeline proposed by Alberta would have to take a southern route. While the agreement makes it clear that British Columbia is not seeking such a project, it also states the province would need to receive a meaningful share of the economic benefits, including the possibility of annual royalty payments.
The federal government is also committing to speed up the approval, financing and construction of several major LNG developments across British Columbia. These include the second phase of the LNG Canada project in Kitimat, Ksi Lisims LNG, the Prince Rupert Gas Transmission Project, Cedar LNG and Woodfibre LNG.
The deal also acknowledges Canada’s intention to increase the capacity of the Trans Mountain Pipeline, which carries Alberta oil to Burnaby. If completed, the expansion would raise throughput from 890,000 barrels per day to 1.19 million barrels per day.
Electricity infrastructure is another major focus of the agreement. Ottawa will invest $3.5 billion in the North Coast Transmission Line, a project that will supply power to communities and industrial developments throughout the region. The agreement describes the transmission line as essential infrastructure for advancing Canada’s critical minerals ambitions.
Mining also features prominently in the deal. The federal government will invest $500 million to support the expansion of the Red Chris Mine in northwestern British Columbia. Carney said the investment is intended to increase Canada’s copper production by more than 15%.
Trade infrastructure is set to receive another significant boost through investments tied to the Port of Vancouver and the Roberts Bank corridor. The agreement describes the transportation corridor as vital for strengthening Canada’s links with some of the world’s fastest-growing markets. Ottawa plans to contribute to a $10 billion expansion of the Roberts Bank container terminal, a project expected to unlock around $100 billion in additional trade capacity while adding roughly $3 billion to Canada’s economy every year.
The replacement of the George Massey Tunnel is also included among the agreement’s priority projects. The federal government has committed to covering up to one-third of the project’s capital costs, with its contribution capped at $3 billion. Support could come through direct funding, low-cost financing or credit facilities, helping improve the movement of goods along Highway 99 beneath the Fraser River.
Beyond transportation and resource development, both governments have agreed to work with provinces and territories on creating a national carbon credit framework. The proposal would recognize credits generated through consumer sustainability initiatives, including home retrofits, electric vehicles and nature-based climate solutions.
Some of the agreement’s financial commitments, including funding for the Red Chris Mine expansion, the George Massey Tunnel replacement and the North Coast Transmission Line, will begin immediately. Other measures outlined in the agreement are scheduled to take effect by Dec. 1 or by June 1 next year.
