Last Thursday’s federal-Alberta deal on a West Coast oil pipeline marks a rare moment of “long-elusive alignment of climate and energy policy,” offering a bolder shift than Prime Minister Mark Carney’s earlier “gradualism and tiptoeing around political landmines,” the Business Council of Canada’s Theo Argitis writes. Bank of Canada deputy governor Nicolas Vincent has warned Canada may be stuck in a “vicious circle” of weak productivity and low investment, raising the question of whether incremental reforms—such as a small tax-rate change—can break the trap. While calling the announcement a potential “policy shock of sufficient scale,” Argitis cautions that real transformation will require difficult choices ahead, as “the share of the economy devoted to consumption will need to shrink.”