Pipelines could contribute to Prime Minister Mark Carney’s vision of transforming Canada into an “energy superpower,” but only if there is a “consensus” for their development, he says.
Exporting more oil and gas is “an element” of Carney’s plan to make the country an energy power house, but it is not “the element” that will make it happen, he said during a May 13 interview with CTV News.
Carney said becoming a superpower requires a mixture of both alternative and conventional energies, and that that oil and gas alone is not enough.
“That in and of itself, doesn’t make us an energy superpower,” he said. “We have all the components in nuclear, in hydro, potentially in carbon capture and storage, which is going to be one of the determinants of competitiveness and productivity in a number of sectors.”
When Carney was asked by reporters whether he would support pipeline construction, he answered in the affirmative.
“First off, I’ve said repeatedly: yes, first point.” he replied. “Secondly, because I understand the need for that consensus, I’m a prime minister who can help create that consensus.”
Carney stated his support for pipelines during the May 13 interview, but his comments on the topic were not always clear during the federal election campaign, according to Bloc Québécois Leader Yves-François Blanchet.
Blanchet accused Carney during the April 16 federal leaders’ French language debate of lacking consistency on the pipeline issue, saying that he simultaneously claimed he would “push pipelines through Canada” and then asserted he would not.
Carney told Radio-Canada last month that new pipelines would “not necessarily” be prioritized by his government.
“We have to choose a few projects, a few big projects, not necessarily pipelines, but maybe pipelines,” he said in French during the April 13 interview. “We’ll see.”
When questioned during the May 13 interview about his evolving views on various environmental policies, particularly the consumer carbon tax that he removed as prime minister after initially endorsing it, Carney reiterated his support for a pipeline.
“If you want a simple answer on ‘Will I support building a pipeline?’ Yes. That’s the simple answer. I’ve given that multiple times,” Carney said. “But it’s not enough. It’s not enough to make Canada an energy superpower. It’s not enough to build our full potential.”
Former Environment Minister Steven Guilbeault, who now holds the heritage portfolio, told reporters during a May 14 press scrum that fighting climate change continues to be a cornerstone of the Liberal government’s agenda.
“It was a central element of our platform, and we will make good on our commitments,” he said.
When questioned about building a new pipeline, Guilbeault referenced Canada’s Trans Mountain Pipeline, which he said is running at only 40 percent capacity. The Trans Mountain Pipeline transports crude oil and refined petroleum products from Edmonton to the West Coast.
“I think before we start talking about building an entire new pipeline, maybe we should maximize the use of existing infrastructure,” said Guilbeault. “Right now, there are no companies that are saying that they want to build an East-West pipeline. And as you know, these things are built by companies, not government.”
Alberta Premier Danielle Smith has blamed the federal government for the lack of proposals from industry to construct new pipelines. She told CTV’s Vassy Kapelos during a May 8 interview that the federal government has created “a chaotic investment environment” and said its Ottawa’s job to “create an environment where the private sector will come to the table.”
Carney on Emissions
Smith and Saskatchewan Premier Scott Moe have both been vocal about their concerns that federal environmental policies are hindering the economic growth of their provinces.Included in these policies is the emissions cap for the oil and gas sector to bring emissions to 35 percent below 2019 levels and the Impact Assessment Act, the 2019 statute that alters the environmental review framework for specific energy projects to incorporate environmental and social considerations in the decision-making process.
Carney expressed his intention during the election campaign to uphold both of the policies established by predecessor Justin Trudeau’s administration, saying his proposed “one window” approval process would hasten “large-scale, national-interest infrastructure projects.”
During the May 13 interview, Carney said he would “change things at the federal level that need to be changed in order for projects to move forward.”
When asked if those changes could include the Impact Assessment Act and the emissions cap, Carney replied it “absolutely could include both.”
“But do it conceptually. Do it on specifics. Do it for moving forward. And that’s the point,” he said.
Smith has described the emissions cap as “an intentional attack by the federal government on the economy of Alberta and the financial well-being of millions of Albertans and Canadians.”
Moe has also condemned the cap, saying it and other regulations will have “serious economic impacts on Canadians and limit our sustainable Canadian energy products from producing heat and electricity to the world.”
Both Alberta and Saskatchewan have criticized various federal mandates over the past few years, maintaining that Ottawa is overstepping with the rules it is putting in place to reach net-zero emissions by 2050. The carbon tax was another policy on which Ottawa and the two provinces disagreed.
Carney set the consumer carbon tax to zero percent when he became leader in March, but pledged to replace it with a new system that would reward Canadians for making lower-emission choices.
He noted during his May 13 interview that he was willing to get rid of the carbon tax for consumers because they make up only 6 percent of the country’s carbon emissions.
“We can do much better with different approaches, including collaborative approaches, which is what I’m looking to do,” Carney said.
He has said the industrial carbon tax will not be repealed, despite requests for its removal by the energy industry.
Both premiers have adopted a wait-and-see approach since the Liberals won a fourth mandate last month, saying they are hoping for changes that will boost industry in their provinces.
The prime minister told CTV he has had “constructive” conversations with both Moe and Smith since his election and added that he intends to work with all of the provinces on improving the economy.
He is slated to meet with premiers at the first ministers conference in Saskatchewan on June 2.
