Environmental groups push Carney to act on climate promises as industry calls for regulatory reform
Canada’s oil and gas sector expressed uncertainty and cautious optimism following the election of a minority Liberal government under new Prime Minister Mark Carney, while environmental groups pressed for a clean energy shift, BNN Bloomberg reported.
Eric Nuttall, partner and senior portfolio manager at Ninepoint Partners, said the energy sector should expect continuity.
“The punchline is I think this is really status quo,” he told BNN Bloomberg, referring to the re-election of a Liberal minority. “You effectively have the same team in place… who has governed for the past 10 years.”
Although Carney spoke during the campaign about supporting the energy sector, Nuttall said his priorities remain unclear.
“Details were extremely light. We heard things like Canada needs to be a global energy superpower, then it pivoted towards a clean energy superpower, so there’s pros and cons.”
Nuttall said the minority status makes it less likely an emissions cap will become law. “It was something (the Liberals) were likely to try to do but given minority status that looks like it’s challenged.”
He strongly criticised the continued presence of Bill C-69, the Impact Assessment Act, which critics call the “no pipelines bill.”
“It’s my view that as long as that remains Canadian law, we will never see another pipeline built in this country again,” he said. “It’s critically important to grow our oil pipeline capacity to lower our customer concentration risk to the United States.”
Canadian Association of Petroleum Producers president Lisa Baiton welcomed a possible reset in energy policy.
“A new federal government offers an opportunity to rejuvenate Canada’s economy and its approach to natural resource development,” she said.
She pointed to campaign statements from both Carney and Conservative Leader Pierre Poilievre highlighting the industry's importance to the country’s economy and security.
Baiton said Canada is at a pivotal point in its history, facing a trade war with its closest trading partner and direct challenges to its sovereignty from the US president.
She added that “Canada has an opportunity to stand out as a stable, trusted trading partner.”
Canadian Association of Energy Contractors head Mark Scholz said Carney has tried to distance himself from the Trudeau-era approach.
“It was a government that did not have a very good relationship with the industry. The industry didn’t trust them,” Scholz said. “So he has a huge opportunity to unite the country.”
Explorers and Producers Association of Canada president Tristan Goodman said Carney’s economic expertise could be beneficial.
He expressed hope that “constructive language will move into tangible action that can actually meet all these expectations of growing the energy business while also addressing climate issues and increasing the opportunities for Indigenous Nations and Indigenous Canadians.”
Prior to the election, 14 oil and gas executives issued an open letter calling for emergency powers to fast-track infrastructure projects deemed in the “national interest.”
Their demands included streamlined regulation, six-month approval deadlines, repeal of the emissions cap and carbon levy, and federal loan guarantees to support Indigenous co-investment.
Poilievre said during the campaign that his party would fulfil all of these requests.
Clean-energy think tank Pembina Institute described the election as pivotal for energy and economic resilience.
Executive director Chris Severson-Baker said Canada should prioritise clean energy infrastructure.
He noted that “this government — and everyone in Canada — has an opportunity to choose a pathway to long-term financial stability, secured global leadership and increased well-being for all,” adding that this pathway is rooted in clean energy.
The institute supports a national clean electricity grid, expanded EV charging infrastructure, and home efficiency programs.
Tim Gray of Environmental Defence warned Carney against using public money to support pipelines or fossil fuel development.
“We trust that Carney knows full well that Canada’s economic future will be best secured by focusing on where the global energy system is going, not where it has been.”
Caroline Brouillette of the Climate Action Network highlighted Carney’s record as UN special envoy for climate action and finance.
She said the new federal government must “focus its attention on building a renewable-powered electricity grid as the backbone of a new economy in line with Canadian values.”
She added that doing so requires a firm stance on energy, without “flirting with fossil fuel expansion and new pipelines,” which she warned would come with high costs.
EY Canada managing partner for industrials and energy, Lance Mortlock, said Carney is equipped to lead through uncertainty. “He’s well equipped to navigate the economy and has led through a crisis before.”
Still, Mortlock warned of “legislative gridlock” due to the minority government and tensions with Alberta’s pro-development stance.
She said the new federal government must “focus its attention on building a renewable-powered electricity grid as the backbone of a new economy in line with Canadian values.”
She added that doing so requires a firm stance on energy, warning against “flirting with fossil fuel expansion and new pipelines,” which she said would come with high costs.
