For immediate release: September 11, 2025

Polluting Fossil Fuel Project Tops the List of the First Five Projects of National Interest

Statement by Tim Gray, Executive Director, Environmental Defence

Toronto | Traditional territories of the Mississaugas of the Credit, the Anishinaabeg, the Haudenosaunee, and the Wendat – Today’s announcement of a plan to double the output of the Kitimat LNG facility is reckless, as it would significantly increase climate pollution during a worsening climate crisis. The additional inclusion of two large mining projects, a port expansion, and a new nuclear plant on the list of projects that may be exempted from environmental laws and their required reviews could also put both the public and Canada’s environment at risk. Several projects slated for future consideration include three that have potential to contribute to clean growth (Wind West, critical minerals and High Speed Rail) and one that is deeply flawed and regressive (Carbon capture and storage).

The federal government promised Canadians that Nation Building Projects would align with our climate goals. This announcement, which begins with the expansion of LNG Canada that will increase climate pollution, is completely inconsistent with this commitment and will threaten Canada’s ability to meet its climate pollution reduction targets. The projects of National Interest on the list for future consideration that could make a strong contribution to clean growth include:

• The Windsor to Quebec City High Speed Rail project is a key project for modernizing and de-carbonizing transportation in Canada’s most densely populated region.
• Wind West Atlantic Energy, a renewables project in the Maritimes that could add 60 GW to the grid
• Critical minerals strategy that should address the entire life cycle of minerals and how they will be used in electrification of transportation and energy storage

The passage of Bill C-5 gave the federal government the power to exempt Projects of National Interest from a suite of environmental laws. The inclusion of major mining, highway, nuclear and port expansion projects on this list of projects means that they may be exempted from review and modification and this should cause great concern for Canadians. Projects such as these need to be designed carefully and with full knowledge of potential environmental, social and economic impacts so proper design features and mitigation strategies can be put in place to protect public and environmental health as well as assure that the public is not left with massive risks and clean-up liabilities. These processes also provide the means to consult with, and secure consent from, Indigenous communities. Mines and nuclear plants in particular can create massive risks if they are improperly constructed, maintained and closed. Bill C-5 broke Canada’s major projects review process, and it is now up to the federal government to prove to Canadians how high-risk projects can be built safely and with Indigenous consent.

The concept of “decarbonized oil” is a dangerous myth. Therefore, the inclusion of a carbon capture project in the next phase of nation-building projects must be reconsidered. Carbon capture and storage has a decades-long record of failure, delivering only a fraction of promised production emission reductions while locking Canada into higher overall oil emissions and draining public funds.

Absent from this Projects of National Interest list are more projects that would help Canadians align with the rest of the world, rapidly moving towards building a clean energy economy. Such projects should include:

• New large-scale and community-level renewable energy projects to deliver affordable clean energy to Canadians
• The development of a low-carbon public transportation strategy that would include rural public transit, regional rail serving Canada’s large cities and core funding for operations
• A national affordable home building and retrofit program that would ensure comfortable, energy-efficient homes are built within our towns and cities
• Creation of an East-West electricity grid that allows electricity to flow between provinces and modernized grid infrastructure to allow for greater use of renewable energy

The first five projects on today’s announced Projects of National Interest lack a focus on clean growth. They should cause Canadians to question whether the federal government is keeping its promise to pivot from dependence on the U.S. and join the rest of the world in the race toward a cleaner economy.

Background

Canada is well on its way to a clean grid, with 80 per cent of Canada’s electricity already emissions-free. However, modelling shows that Canada will need seven times more renewable energy by 2035 to meet growing energy demand and our climate goals. The Wind West Atlantic Energy project could be an integral part of Atlantic provinces getting off of dirty coal power and creating a clean energy surplus, if it’s done well. As Canada electrifies everything from transportation to buildings to manufacturing in order to reduce greenhouse gas emissions, it is essential to ensure the electricity that underpins our economy is clean. The new renewable energy and transmission projects that should be prioritized are those that decarbonize the grid and support growing sectors in the long-term clean economy, not to electrify fossil fuel production that will need to be phased out.

Consideration of the Pathways Alliance’s carbon capture project as a “nation-building” project is irresponsible. Since 2000, CCS projects have captured only 0.0004% of Canada’s emissions. The Pathways Alliance CCS project carries a $16 billion price tag for Canadians but will capture just five percent of the oil and gas sector’s pollution. Since 2024, many First Nations and Métis communities have requested a federal review under the Impact Assessment Act to assess the environmental impacts of this project.

Canada entered the LNG marketplace late, with key existing and future markets already dominated by larger producers like the United States and Russia. Mostly methane, LNG is both toxic and a potent greenhouse gas, contributing as much to planetary destruction as coal and oil. With massive project oversupply now coming online, Canada will have invested in more planet-heating carbon while wasting resources that could have developed renewable energy for export to the United States.

ABOUT ENVIRONMENTAL DEFENCE (environmentaldefence.ca): Environmental Defence is a leading Canadian environmental advocacy organization that works with government, industry and individuals to defend clean water, a safe climate and healthy communities.

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For more information or to request an interview, please contact:

Midhat Moini, Environmental Defence, media@environmentaldefence.ca