In a significant political development, Canadian Heritage Minister Steven Guilbeault has resigned from the government. He left his position to protest a major new energy agreement between Prime Minister Mark Carney and Alberta Premier Danielle Smith. The deal, which was announced on Thursday, will allow for the construction of a new heavy oil pipeline to the Pacific Coast. This decision has revealed serious disagreements within the government and across the country about climate policy and economic growth.
The agreement represents a major change in Canada's energy strategy. The federal government will remove several important environmental rules. These include a planned limit on emissions from the oil and gas industry and regulations for clean electricity. The government will also change the law that bans oil tankers from some coastal areas. In return, Alberta has promised to make its carbon pricing system for industries stronger and to invest billions of dollars in carbon capture technology. Supporters of the new pipeline say it is essential for diversifying the economy. It is designed to transport one million barrels of low-emission oil every day to markets in Asia. Prime Minister Carney defended the deal by pointing to trade pressures from the United States. He warned that $50 billion—which is about $1,300 for every Canadian—is at risk because Canada currently sends 90% of its oil exports to a single market.
This change in policy had an immediate political consequence. Minister Guilbeault, who is a well-known environmentalist and was previously the Environment Minister, announced his resignation with "great sadness." He publicly stated that the new pipeline goes against Canada's promises on climate change. He believes the project will have "major environmental impacts" and will make it harder for Canada to meet its targets for reducing greenhouse gases.
The deal has received very different reactions from different groups. The oil industry and Premier Smith have praised it, with Smith saying it will "unleash investment" in Alberta. However, there is also strong opposition. The Premier of British Columbia, David Eby, is against the new pipeline route and the removal of the tanker ban. He has suggested expanding the existing Trans Mountain pipeline instead. Additionally, a coalition of Indigenous groups in British Columbia has strongly rejected the plan. They have promised that they "will not allow oil tankers on the northwest coast" and that the project will "never happen."
The resignation of such an important minister shows the deep divisions within Prime Minister Carney's government. With the project facing serious legal and political challenges from British Columbia, First Nations, and environmental groups, this pipeline agreement has not only caused a government crisis but has also started a major national conflict.