Canadian Prime Minister Mark Carney signed an agreement on Thursday with the western energy-producing province of Alberta to advance a new oil pipeline, a divisive move raising concern about Ottawa's commitment to confronting climate change.

The memorandum of understanding charts a plan for a pipeline going from Alberta to Canada's Pacific coast, specifically to boost oil exports to Asia – in line with Carney's goal of expanding overseas trade to offset damage from US President Donald Trump's trade war.

"At the core of the agreement, of course, is a priority to have a pipeline to Asia," Carney said ahead of the signing alongside Alberta's conservative Premier Danielle Smith.

Aside from broadening exports, the plan endorses an overall increase in Alberta oil and gas production.

The deal marked a clear pivot for Carney's Liberal Party and a departure from the policies that defined former prime minister Justin Trudeau's decade in power.

Relations between Alberta and Ottawa cratered under Trudeau.

Smith repeatedly accused him of suffocating Alberta's potential economic growth through what she termed radical pro-climate policies.

Smith took a jab at Trudeau on Thursday, saying "the last 10 years have been an extremely difficult time."

Carney, who grew up in Alberta, has worked to improve relations with Smith, repeatedly discussing his desire to make Canada an energy superpower.

In backing a new pipeline, Carney is exposing himself to accusations of betraying Canada's climate commitments, including from within his own party.

Under the plan, Ottawa also agreed to set aside an emissions cap, which has not yet come into effect.

But the prime minister – a UN climate envoy before entering Canadian politics this year – insisted the project will also make Canada's oil sector more sustainable.

"The way we're going to do that is in combination with the Pathways Project, which will be the largest carbon capture project in the world," Carney said.

The IPCC, the UN's expert scientific panel on climate change, says carbon capture is one option for reducing emissions, but critics slam it as an excuse to keep burning fossil fuels. (AFP)