CALGARY — Alberta and Ottawa have reached an “agreement-in-principle” that puts the province in control of regulating its methane emissions, with final rules expected by the end of this year.

The federal and provincial governments inked a sweeping accord in November touching on several energy policy matters, including a plan to reach a methane equivalency agreement on or before April 1 aimed at eliminating the overlap between federal and provincial rules.

“Canada is strongest when we work together,” Prime Minister Mark Carney said in a news release Wednesday.

“By partnering with Alberta on a methane equivalency agreement, we will cut emissions while ensuring we protect Canadian jobs and build a more competitive and resilient energy sector.”

The two governments are to release a draft equivalency agreement later this year, which will be open for consultation for 60 days and finalized by year-end.

The Alberta government says without an equivalency agreement, both federal and provincial rules would apply, increasing costs and creating duplication. Federal methane regulations would be stood down in Alberta, with equivalent provincial regulations in place, the agreement in principle says.

“Albertans have long known that responsible energy development and strong environmental performance go hand in hand,” said Premier Danielle Smith in a release.

“This agreement reflects that approach, keeps decision-making here in Alberta and builds on a system that is already delivering results.”

November’s MOU set out a goal of cutting emissions of the potent greenhouse gas by 75 per cent from 2014 levels by 2035. That’s five years later than earlier federal draft regulations had called for. At the time, that change drew dismay from environmental groups and qualified applause from the energy sector.

Methane is a greenhouse gas more than 80 times more potent than carbon dioxide over a 20-year span, but its lifetime in the atmosphere is up to a dozen years versus centuries for CO2. So targeting methane is often considered low-hanging fruit for near-term emissions reduction efforts.

Three other items in the MOU came with an April 1 target. One was a co-operation agreement on streamlined project reviews, and the two governments announced an agreement-in-principle on that earlier this month. Still outstanding are deals around industrial carbon pricing and the massive Pathways carbon capture and storage proposal.

This report by The Canadian Press was first published March 25, 2026.

Lauren Krugel, The Canadian Press