By Emilia Belliveau, Energy Transition Program Manager, Environmental Defence 

Ottawa | Traditional, unceded territory of the Algonquin Anishinaabeg People – Prime Minister Mark Carney’s Major Projects Office is making a major mistake by fast-tracking a pipeline the world doesn’t want or need, and that will require billions of taxpayer dollars. There is no excuse for this reckless project that will deepen the climate crisis, put endangered Southern Resident Orca Whales at risk of extinction, and benefit very rich oil companies at the expense of everyday Canadians.

Canada and Alberta have agreed to cover at least 90 per cent of the pipeline’s costs, after private industry declined to put any substantial money of its own behind the project. This project’s costs will easily surpass the $45 billion estimate, and Prime Minister Carney is essentially signing a blank cheque with taxpayers’ money. Polling shows a majority of Canadians don’t want their taxes funding this pipeline, or their environmental protections gutted to build it.

This pipeline began with a weak economic case. Even with a rushed rubber-stamp review, this pipeline could not be in service until well beyond the peak of global oil demand. No new buyers will emerge for more Canadian oil.

An honest financial assessment would also consider that this pipeline will fuel further climate change, which is already costing Canada billions of dollars a year – in flooded basements, evacuated towns, and wildfire smoke that shuts in entire cities. This is a bad investment dressed up as a national priority.

Calling this a “project of national interest” is a farce. The government fast-tracked this decision through a public comment period that gave Canadians little time to weigh in. Despite the truncated timeline, more than 43,000 Canadians spoke up in opposition. Less than two weeks after closing that comment period, the project is being designated anyway. This government doesn’t appear to have considered the concerns of communities bearing the project’s risks, or those who know Canadians won’t see any real benefits.

Background

• The Major Projects Office designated the West Coast Oil Pipeline (now being called Pacific Link) a “Project of National Interest” (PONI) under the federal Building Canada Act, fast-tracking its approval process. It is also now exempt from certain environmental regulations and impact assessments.
• The Major Projects Office held a brief public comment period (less than two months). More than 43,000 people across Canada voiced opposition to the pipeline since the southern route was announced. Rushed “consultation” with First Nations along the proposed route took place during this same period, and is unlikely to meet the standard for Crown consultation established by Canadian courts.
• The proposed route includes a crossing through Jasper National Park and thousands of waterways. It terminates in the Fraser Basin Estuary atop seismically unstable land. Opponents have raised concerns about risks to sensitive ecosystems and important species, including salmon and the endangered Southern Resident Killer Whale, as well as the climate impact and broader weakening of federal environmental and species-protection laws to accommodate this and other megaprojects.
• Alberta’s initial proposal estimates the cost at $35 to $44 billion. Canada and Alberta have since agreed that public funds will cover 90 per cent of costs.
• Recent polling found that at least 50 per cent of respondents (and 50–59 per cent of Liberal voters) said they would be less likely to support an MP who backs taxpayer funding for another oil pipeline. Between 46 and 58 per cent said they’d be less likely to support an MP if the government fast-tracks megaprojects without full environmental assessment. Similar polling results were found across provinces Alberta, Ontario, Quebec and British Columbia.
• Over 90 per cent of Canadian bitumen exports currently go to the U.S. China is the only other country equipped to refine Canada’s heavy crude, but Sinopec, China’s state oil company, has said the country’s oil demand “very likely” peaked in 2025. The International Energy Agency projects global oil demand will peak by 2030 — before construction of this pipeline would be complete.

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