Mark Carney reaches deal with Alberta for oil pipeline opposed by First Nations | Canada

Mark Carney signed an energy deal with Alberta focusing on plans for a new heavy oil pipeline from the province’s oil sands to the Pacific coast; This is a politically unstable project and is expected to face fierce opposition.

The move turned out to be politically damaging within hours, as Canadian culture minister Steven Guilbeault, a former environment minister, announced he would leave the cabinet. Guilbault, a former activist and lifelong environmental advocate, said he strongly opposes the plan.

The prime minister said in a meeting with Alberta premier Danielle Smith on Thursday, shortly before losing a leading member of his cabinet, that it was “a great day for Alberta, a great day for Canada.” He said the deal “prepares the state for an industrial transformation” and covers not just a pipeline but also nuclear power and data centers. “This is Canada working,” he said.

The deal was praised by Smith for its potential to “unleash” investment in the state.

Carney and Smith made the announcement after weeks of negotiations that marked a dramatic shift in relations between the federal government and Alberta. The two have clashed in recent years over Alberta’s accusations that Ottawa is undermining its economic potential by restricting carbon emissions.

The basis of the agreement is to increase oil and gas exports while trying to meet the federal government’s climate goals. The Carney government will exempt a potential pipeline project from the existing coastal oil tanker moratorium and cap. In response, Alberta needs to increase industrial carbon pricing and invest in a multibillion-dollar carbon capture project.

But critically, no company expressed interest in supporting the project; The project will likely face stiff opposition from the province of British Columbia and First Nations communities on the Pacific coast.

The move also reflects a political shift for Carney, who developed a reputation as an economist who steered capital markets towards a net-zero future before entering politics. Now he must sell a plan that conflicts with those values.

In a post on social media announcing his resignation, Guibeault said his decision to resign came with “great sadness” but was necessary given his values ​​as an environmental advocate.

“First, there has been no consultation with Indigenous nations or the provincial government on the west coast of British Columbia, who will be greatly affected by this agreement,” he wrote. “In addition, a pipeline to the west coast would have major environmental impacts, particularly as it would cross the Great Bear rainforest, contribute to a significant increase in climate pollution, and push Canada further away from greenhouse gas reduction targets.”

Guibeault warned that lifting the moratorium on oil tanker traffic would significantly increase the risk of accidents in the region.

The talks between Alberta and the federal government were notable for the exclusion of neighboring British Columbia, whose prime minister has expressed strong opposition to a new pipeline passing through his province. David Eby said he was opposed to the pipeline and the possibility of allowing tanker traffic in the narrow, turbulent waters of the north coast. Instead, his government has proposed increasing the capacity of the existing Trans Mountain pipeline.

But the Alberta government is adamant that it wants a new pipeline, not just increased capacity, and has repeatedly promised to submit a proposal by spring.

Before passing a bill in June giving his government the power to override environmental regulations and fast-track projects in the national interest, Carney said any new pipeline must have the support of First Nations whose lands are left to provincial or federal governments.

But even before Carney and Smith made their announcement, First Nations said any new pipeline is effectively dead on arrival.

“We are here to remind the Alberta government, the federal government and any potential private sector advocates that we will never allow oil tankers onto our coasts and this pipeline project will never happen,” said Marilyn Slett, chief of Coastal First Nations (CFN), a group representing eight First Nations along the coast.

Slett, the elected chief of the Heiltsuk Tribal Council, has previously warned of the risks of oil spills in a sparsely populated area with little rapid response infrastructure, having witnessed a 100,000-litre diesel spill near his community in 2016. He said no treaty could “override our natural and constitutional Rights and Title or deter our deep bond of mutual respect for the ocean.”