Prime Minister Mark Carney and Alberta Premier Danielle Smith have agreed to the broad outlines of a memorandum of understanding that would give Alberta special exemptions from federal environmental laws and offer political support to a new oil pipeline to the B.C. coast, CBC News has learned.

The deal is set to be formally announced at a joint Carney-Smith news conference in Calgary on Thursday.

It would be contingent on Alberta embracing a stricter industrial carbon pricing regime and a multibillion-dollar investment in carbon capture from the Pathways Alliance of oilsands companies, according to sources who spoke to CBC News.