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A weaker industrial carbon price could hamper Canada’s already-beleaguered effort to reduce national emissions. Citing media reports about the coming deal on the industrial carbon price, the organization Environmental Defence called the changes the “final nail in Canada’s climate action coffin.”

The two governments blew past their April 1 deadline to agree on a new path forward for the industrial carbon price, as well as a decision on this major carbon capture project.

As part of the deal, the Carney Liberals also agreed to scrap a planned emissions cap for the oil and gas industry, suspended clean electricity rules for the province of Alberta, and weakened methane regulations.

Steven Guilbeault, the former environment minister who helped craft many climate policies under Trudeau’s prime ministership, resigned from Carney’s cabinet over the accord.