Mr. Speaker, I want to thank my colleague for bringing up this issue.
The world is changing rapidly. The United States, the world's largest economy and Canada's main economic partner, is fundamentally reshaping all of its trading relationships. To say that it is causing disruption for Canada is an understatement. This is not an economic transition. It is a generational shift, a rupture.
Sitting back and thinking about the good old days is not a strategy. We need to transform our economy from one that is reliant on a single trading partner to one that is stronger, more independent and resilient to global shocks. This is why we have removed federal barriers to internal trade so that we can be our own best customer. This is why we passed legislation to fast-track the approvals of nation-building projects, a key to diversifying our economy and fulfilling our potential as an energy superpower.
We are a resource-rich country with critical minerals, clean and conventional power and a world-class agri-food industry. Let us be clear: Canada has what the world needs, and we need to secure our place in the new global economy.
In November, our government struck a new partnership with the Province of Alberta to lower emissions, unlock our natural resources and build a stronger and more sustainable economy. It will enable a clear and efficient approval process for a new pipeline, built and paid for by the private sector with indigenous peoples' co-ownership and benefits. The pipeline will bring Canadian oil to new Asian markets. It will help us diversify our exports, reduce the discount on current sales to U.S. markets and increase Canada's independence and prosperity.
The memorandum of understanding that we signed with Alberta also advances the construction of Pathways Plus. It will be the largest carbon capture, utilization and storage project in the world. It matters because energy does not only have to be low cost; it also needs to be low carbon. Under the MOU, Alberta will beef up its own technology innovation and emissions reduction program to establish an effective carbon price of $130 per tonne. This is an accomplishment. This will help send a clear signal to industry that emitting carbon is costly, and therefore make carbon capture, utilization and storage more attractive.
For our part, we will extend federal investment tax credits to encourage large-scale carbon capture investments, including Pathways and enhanced oil recovery. Pathways will make Alberta oil among the lowest carbon-intensity produced barrels of oil in the world. As for enhanced oil recovery, it is a plus for carbon capture and storage. It generates demand and revenue for captured CO2, and therefore, it helps to scale up and attract carbon capture projects, all while storing the captured CO2 so it is not released into the atmosphere.
Canada can be and will be a superpower in both clean and conventional energy.