There is perhaps no greater contrast that can be drawn between the Liberals and Conservatives than their respective approaches to developing Canada’s natural resources, and specifically the country’s oil and gas sector. The Liberals are charting a course for Canadians that would have the country exit the oil and gas sector in the next few decades, while the Conservatives look to take full advantage of the wealth generated by the production and export of Canada’s single biggest industry in the country.
Liberals’ maintaining focus on “clean energy.”
Though the Liberals promise to promote Canada as a superpower in conventional and clean energy and they recognize the need for pipelines, trade corridors and energy infrastructure, Liberal Leader Mark Carney has indicated that he will not be changing direction on any of the energy laws that the Liberals put in place during their last mandate.
The Liberals will not repeal Law C-69, the Impact Assessment Act (also known as the “no-new pipeline law”) that has killed most of Canada’s major infrastructure projects. The Liberals have committed to keep the emissions cap on the production of oil. Carney has promised to eliminate the carbon tax for consumers but will hike the tax on Canadian industrial sectors and add a new carbon tax on Canada’s exports – though no details have been made public. The Liberals also intend on maintaining their green funding programs to provide massive subsidies to renewable energy initiatives, such as paying for the construction of EV car and battery factories.
In commenting on the Liberals’ energy policies, Carney has repeatedly stated that his government would continue on the course set by the Trudeau Liberals, and in some instances, he will improve the government processes to better meet the urgency of climate change imperatives. One example where a Carney government would differ from the established Liberal energy policy is to put in place a new carbon tax on Canadian industrial exports. He explained the benefits of this initiative at a press conference in London, England just prior to the election call: “It’s a more efficient system. It works better for the large polluters, it works better for Canadians, and it also is a system that recognizes the new trading reality.” Carney called his new carbon tax an “opportunity” for Canadian businesses for it will help them trade with the European Union, the U.K., and “emerging Asia,” where he contends new carbon taxes will be a requirement of international trade.
Another Liberal policy that has been criticized by industry experts is Carney’s vow to maintain the energy production cap. According to a Parliamentary Budget Officer (PBO) report, this Liberal policy will throttle oil and gas development, losing more than $20.5 billion in GDP and 54,400 jobs by 2032. A similar Treasury Board study estimates that, between 2030 and 2040, this production cap will reduce Canada’s GDP by a full one percent or $91 billion of activity – and Alberta will be the hardest hit, with a loss of 4.5 per cent of GDP or $191 billion of activity in the province. At a campaign stop in Alberta, Carney was asked about the devastating impact on Alberta’s and the country’s economy by cutting oil and gas production and he was emphatic in stating his Liberal government will maintain the cap.
Carney is steadfast in his beliefs about carbon taxes and energy production caps because he has personally been the champion of such policies on the world stage for years as the United Nations Special Envoy for Climate Action and Finance, and a Board Trustee of the World Economic Forum – both global bodies advancing the sustainable development objectives of the U.N.’s Agenda 2030. Carney is 100 per cent committed to having Canada meet its climate obligations as set out in the global net zero goals for 2030 and 2050. There would be no policy argument, no amount of investment or job losses, no decline in GDP that will move the Liberals off the course they have charted for Canada’s natural resources policies.
In his Financial Post editorial piece entitled “Carney is as climate crazy as Guilbeault,” Matthew Lau wrote about the economic discrepancies of the Liberals’ policies and what that might mean for Canadian taxpayers and/or industries. Lau stated, “Last month, Carney laid out Canada’s required contribution to his climate ambitions: ‘Canada must invest $2 trillion by 2050 — about $80 billion per year — to become carbon competitive and achieve Net Zero. However, investments in decarbonisation currently run between $10–20 billion annually.’ The implication is that another $60-70 billion a year will need to be wrung out of Canadian businesses and consumers, either through direct taxation and government spending or with regulatory browbeating to push Canadians’ savings and investments into global warming initiatives.”
Lau makes the point that the Liberals’ energy plan is tied directly to their green objectives. He observes, “For a decade, [Carney] has pushed Greta Thunberg’s agenda on the world’s largest financial institutions. He won’t let electoral politics stop him.” Verily, Canadians know exactly what to expect with the Carney Liberals.
Conservatives committing to oil and gas sector and infrastructure development.
In stark contrast to the Liberals net zero approach to managing Canada’s natural resource sectors, the Conservatives are looking to use the oil and gas industry to supercharge the economy and ensure Canada is more resilient to U.S. tariff threats and global markets’ shifting trade alliances. Conservative Leader Pierre Poilievre has been specific in how the Conservatives would proceed: “Under my leadership, a new Conservative government will listen to our energy producers, the men and women who build the infrastructure and sell the oil and gas that drives our economy, and immediately repeal Liberal anti-growth laws and slash costly red tape so we can approve resource projects and quickly build the energy infrastructure we need to unleash our economy and make Canada strong and free again.”
In a Conservative media release, Poilievre signaled he would “approve new pipelines to the Atlantic and the Pacific, and green light and expedite LNG projects, in alignment with Indigenous peoples, including Phase 2 of the LNG Canada project, to significantly increase Canada’s oil and gas exports, bringing tens of billions of dollars of new federal revenue.”
From its campaign platform, the Conservative energy policy has five initiatives:
First, repeal the “No-New-Pipelines” Law and the Tanker Ban: The Conservatives will repeal the Liberal “No-New-Pipelines” Law C-69, which makes it impossible to build the pipelines and energy infrastructure Canada needs. Conservatives will also end the Liberals’ West Coast tanker ban (Bill C-48) so we can build new pipelines and LNG terminals to export our energy overseas, ending our economic dependence on the United States.
Second, establish six-month approvals: the Conservatives will set a target for decisions on applications to be made within six months, scrapping the Liberals’ red tape process that has left resource projects snarled in costly uncertainty and chased away investors, dollars, and jobs.
Third, scrap the energy cap: the Conservatives will scrap the job-killing energy cap on oil production, and approve and build new projects.
Fourth, axe the industrial carbon tax: Poilievre commits to fully axe the Liberals’ carbon tax law, including Carney’s promised increased industrial carbon tax. This eliminates the increased carbon tax the Liberals have said will be applied on Canadian steel, aluminum, natural gas, food production, concrete and all other major industries. It will lower prices and make Canadian industries competitive with global competitors who also do not have a carbon tax.
Fifth, create Indigenous loan guarantees: A Conservative government will establish the Canadian Indigenous Opportunities Corporation, led by Indigenous people, to offer loan guarantees for Indigenous communities.
Poilievre is proposing two hallmark policy initiatives that will provide an immediate positive impact to developing and growing Canada’s natural resource industries. First, the Conservatives will create a “Canada First National Energy Corridor” that will expedite the approval and construction of energy infrastructure projects within an established track of land across Canada. This will facilitate the efficient development of pipelines, railways, transmission lines, and other critical infrastructure. The Conservatives also claim that this has the potential to “bring billions of dollars of new investment into Canada’s economy, create powerful paycheques for Canadian workers, and restore our economic independence.”
Second, the Conservatives will introduce a streamlined approval process for resource projects and have identified ten specific projects, which have been held up for years under the Liberal government, to be instantly approved. These ten projects include Phase II of LNG Canada — a massive natural gas liquefaction project in Northern British Columbia, Springpole Lake Gold — a proposed Ontario gold and silver mine with an on-site metal mill, and the Sorel-Tracy Port Terminal — a proposed new port terminal in the industrial-port area of Sorel-Tracy Quebec.
At the outset of the election campaign, the country’s top energy executives called on the future government to declare a “Canadian energy crisis” and commit to five urgently required steps that will spur on the development of much needed infrastructure projects within the country. The five required steps are: 1) Repeal the “No-New-Pipelines” Law C-69 and the Tanker Ban. 2) Grant decisions on major projects within six months. 3) Scrap the Energy Cap. 4) Scrap the Industrial Carbon tax. And 5) Provide Indigenous Loan Guarantees, so they can be equity partners in energy projects. Carney has not addressed this call for action and the Liberals are adamant that they will not entertain four of the five points. Poilievre has directly addressed this list of action items, and the Conservatives are fully committed to working with the industry to jump start the development of Canada’s natural resources and infrastructure projects. This is the choice for Canadians.
Chris George is an advocate, government relations advisor, and writer/copy editor. As president of a public relations firm established in 1994, Chris provides discreet counsel, tactical advice and management skills to CEOs/Presidents, Boards of Directors and senior executive teams in executing public and government relations campaigns and managing issues. Prior to this PR/GR career, Chris spent seven years on Parliament Hill on staffs of Cabinet Ministers and MPs. He has served in senior campaign positions for electoral and advocacy campaigns at every level of government. Today, Chris resides in Almonte, Ontario where he and his wife manage www.cgacommunications.com. Contact Chris at chrisg.george@gmail.com.
