Summary

• Canada is looking for buyers of its fossil fuels, from bitumen to LNG, amid a global energy glut.
• The European Union has an objective of becoming the “world’s first climate-neutral continent” by 2050 and gets 70 per cent of its electricity from renewable energy or nuclear power.
• The federal government has gone back and forth over the years on whether to build export terminals on Canada’s East Coast to carry fossil fuels to Europe.

We’re trying out staff-written summaries. Did you find this useful? YesNo

Europe will give priority to clean energy sources and expects to continue to rely heavily on renewables and nuclear power, says a high-level European Union diplomat.

Belén Martínez Carbonell, secretary-general of the European External Action Service, the European Union’s diplomatic corps, made the remarks at a Feb. 27 press conference in response to a question from The Narwhal about whether Europe wants Canada’s oil and gas. She was in Ottawa as part of a visit to discuss a number of urgent foreign policy and defence priorities with senior Canadian government officials.

Her comments come as the world faces a global energy glut in fossil fuels, leading to questions — and challenges — for Canadian suppliers, including in oil-rich Alberta. The province just last week unveiled a budget showing depressed oil prices had led to a $7.5-billion decrease in royalties from the oilsands. But U.S. strikes on Iran in recent days, and retaliatory strikes throughout the region, have already impacted the global oil market and could send prices soaring.

Globally, the signals are mixed when it comes to prospects for Canadian fossil fuels. Canada’s trade relationship with the U.S., its biggest trade partner, has been fraught with uncertainty since the election of President Donald Trump. That uncertainty has led to increased interest in Canadian energy from China. The Indian government has also signalled it is eager to import Canadian oil and gas products, according to remarks by the Indian high commissioner, made as Prime Minister Mark Carney embarks on a visit to that country.

Meanwhile, Europe began importing higher volumes of liquefied natural gas (LNG) from the United States following Russia’s 2022 invasion of Ukraine. At the time, Europe moved to shut down Russian gas imports and phase out Russian oil. But relying on fossil fuels like methane-heavy LNG complicates the European Union’s objective of becoming the “world’s first climate-neutral continent” by 2050. That means Europe isn’t exactly rushing to buy Canadian oil and gas.

“Generally speaking, our policy is to give priority to clean energy sources, because we are on target to comply with our 2050 targets,” Martínez Carbonell said.

“More than 70 per cent of our electricity comes from clean renewables or nuclear, particularly small nuclear reactors. That’s the way forward. Simple.”

Talks ongoing on whether Canada’s carbon pricing can help avoid European tariffs on steel and more

This January, Europe enacted its Carbon Border Adjustment Mechanism, which implements a tariff on imports of carbon-intensive goods like steel and cement.

The mechanism raises the question of whether Canada’s own carbon pricing regime — which Carney has tinkered with, by first killing the consumer-facing carbon tax and then signing a deal with Alberta to allow more flexibility with its own — will be strong enough to keep up robust trade with Europe. 

European diplomats say the two jurisdictions are holding many conversations on the topic, including between Carney and European Commission President Ursula von der Leyen, on how Europe can take Canada’s carbon pricing into account.

“This is, I would say, a question that comes up again and again, and there are some discussions to take that into consideration, to adjust the price,” said European Union Ambassador to Canada Geneviève Tuts, sitting beside Martínez Carbonell.

“We will not abandon the [tariffs] — but the price might be adjusted depending on what is done already in the country.”

Canada’s evolving energy relationship with Europe

The European Union and Canada are part of a “High-Level Energy Dialogue,” collaborating on things like developing a hydrogen supply chain, tackling methane emissions and developing nuclear power. 

But the question of where Canada’s fossil fuels fit into the relationship has at times been a tricky one to answer.

Thirteen years ago, for example, the government under former prime minister Steven Harper was ultimately successful in opposing a push from Europe to discourage sales of fuel made from oilsands bitumen.

Crude oil from the oilsands is heavy and thick with sulphur. It requires extra steps in the upgrading and refining process compared to some other crudes to turn it into petroleum products like gasoline, which led some environmental organizations at the time to label it “dirty oil.”

More recently, oil and gas lobbyists in Canada argued after the Russian invasion of Ukraine that providing more fossil fuels to Europe would help support allies and displace foreign and hostile energy sources.

Months later, then-prime minister Justin Trudeau poured cold water on the idea during a meeting with his German counterpart in Montreal, when he said “there has never been a strong business case” to build LNG export terminals on Canada’s East Coast to ship more gas to Europe.

Under Carney, the message has changed again. On a trip to Berlin last year, Natural Resources Minister Tim Hodgson said Germany does, in fact, want to buy Canada’s LNG. Canada announced in August it would “begin discussions regarding the supply of LNG to German buyers.”

Hodgson has also said Canada wants to diversify its gas sales away from the United States, and the European Union’s energy commissioner has been open to that idea.

Europe’s reliance on fossil fuels for electricity is already dropping and that’s the ‘way to go’: secretary-general

Martínez Carbonell noted Europe’s decoupling from Russia has meant a change in the energy mix from many countries, including the U.S. 

But she said the moving toward non-emitting electricity generation is “the way to go … continuing relying on renewables, diversifying energy imports when it comes to LNG, while bringing down to zero the energy exposure to Russia.”

At the same time, it’s unclear what kind of long-term demand Europe will have for oil and gas. Currently, the global explosion of LNG terminals is leading to a worldwide glut of natural gas.

Meanwhile, European Union statistics show electricity generated from fossil fuels decreased by 7.2 per cent in 2024 compared with the previous year and oil and petroleum products saw a 1.2 per cent drop in supply.

The Narwhal’s reporters are telling environment stories you won’t read about anywhere else. Stay in the loop by signing up for our free weekly dose of independent journalism.

Seven months after the Liberal Party vowed to “immediately introduce and pass legislation” affirming the right of First Nations to clean drinking water, Prime Minister Mark Carney’s government says they’re still working on it.

This comes as First Nations leaders call on the government to better protect the health of their communities from the threat of toxic waste in the Alberta oilsands.

The Alberta government is looking closely at recommendations made in September to speed up the creation of standards, so oilsands companies can treat and release their giant reservoirs of wastewater, called tailings ponds, into the Athabasca River.

The oil and gas industry has been asking for permission to release the treated wastewater. Alberta Premier Danielle Smith has given Environment Minister Rebecca Schulz a mandate to come up with a plan for the reservoirs, which as of 2024 have grown to 1.5 trillion litres in volume, covering an area larger than the city of Vancouver.

Several First Nations communities downstream of the oilsands rely on the river for drinking water and to support the ecosystem that produces their food. They are against treating and releasing the wastewater into their watershed.

“The technology for treating these oil tailings is unproven and cannot guarantee that the water would be safe for my people to drink,” Mikisew Cree First Nation Chief Billy-Joe Tuccaro said during a Nov. 3 press conference in Ottawa.

The national chief of the Assembly of First Nations asked the federal government this month to reintroduce a Trudeau-era bill called the First Nations Clean Water Act. The bill, meant to establish legal pathways to protect drinking water sources flowing into First Nation territory, died when former Prime Minister Justin Trudeau prorogued Parliament in early 2025 right before leaving office.

Indigenous Services Minister Mandy Gull-Masty told The Narwhal in a statement she has been taking time to get the details right. She said ensuring safe drinking water for First Nations communities is a “top priority” for the government.

“I take this issue very seriously and hope to have more to say very soon,” Gull-Masty said.

“We are working carefully to make sure the new legislation is strong, effective and truly reflects the needs and priorities of First Nations communities.”

Some First Nations leaders opposed the water bill when it was first debated in Parliament, saying it doesn’t go far enough to protect Treaty Rights, or guard against toxic industrial byproducts, and have criticized the national chief for pushing the bill despite their concerns. Mikisew Cree First Nation is still opposed to its reintroduction.

‘Doing nothing’ is not sustainable: Alberta government

Oilsands mining processes need huge amounts of water. Extracting the petroleum substance bitumen creates toxic byproducts that are stored in tailings reservoirs.

Currently, oilsands operations have no federal authorization to release any wastewater into any natural water bodies. Schulz has said “doing nothing” while the tailings keep on swelling in size “is not a sustainable long-term approach.”

In addition to being toxic, the tailings are dangerous to wildlife, like in 2022 when hundreds of birds died from contaminated water at one site owned by Canadian Natural Resources Limited.

Mikisew Cree First Nation, residing on the shores of Lake Athabasca, is skeptical of the idea after spending years sounding the alarm about the cancer crisis it says it’s dealing with.

The community suspects its higher-than-average rates of some forms of cancer are tied to industrial activity on its traditional territory. The latest public data available from Alberta Health Services is from 2014 and showed higher-than-expected instances of cervical cancer and biliary tract cancer in the community.

The community’s health concerns were heightened, Chief Tuccaro said, when wastewater leaked from an Imperial Oil oilsands site in 2022 and went unreported to the public for nine months.

“Adding yet another significant, cumulative effect to an already fragile system is unacceptable,” he said.

“We continue to work with the federal government to explore the alternatives of treat and release, and we encourage them to continue that work to find a solution that keeps our community safe.”

Environment and Climate Change Canada has been working with Health Canada and nine Indigenous communities to assess the need for regulations overseeing treated oilsands mining waste, including exploring how to manage oilsands tailings, a spokesperson told The Narwhal.

The government published a paper early this year “developed collaboratively” with the group that discussed alternatives to treat-and-release and their potential benefits and risks.

The federal department expects to publish a draft regulatory framework by the end of next March — and then carry out more analysis of potential impacts to Indigenous Rights and other concerns. The group will then make final recommendations to Environment and Climate Change Minister Julie Dabrusin.

First Nations leaders have also long asked the federal government to complete a comprehensive study of health impacts in the oilsands region. In 2024, after decades of concern, the federal government announced it would spend $12 million over ten years to study the “impacts of the oilsands on community members’ health.”

Chief Tuccaro was joined by Treaty 8 First Nations of Alberta Grand Chief Trevor Mercredi, who said there are solutions available that could reduce the toxic tailings reservoirs — but they were considered expensive.

He didn’t give examples, but one potential solution that involves drying the tailings out so they become stackable “cakes,” for instance, requires high upfront and operating costs.

Mercredi argued the price shouldn’t matter. “If it increases the cost of a barrel of oil by $2 a barrel, then it has to be looked at. There is no price for the health of our people,” he said.

“We understand that Canada’s in a rough place right now, and we need development for a lot of this industry. Nobody up here is against any type of development or industry, but what we are against is the poisoning of our lands for many generations.”

Assembly of First Nations National Chief Cindy Woodhouse Nepinak also joined the two chiefs, and called on Carney to work with Treaty 8 First Nations and others on the issue of safe drinking water.

“Water sustains not just our bodies, but our spirits, our traditions, our way of life and our economy. First Nations are united in the belief that water is a fundamental human right,” she said.

Canada’s previously proposed clean water bill wasn’t the answer for everyone

In voicing concern about water protection, National Chief Woodhouse Nepinak called on Carney to “honour his promise during the election and reintroduce the First Nations Clean Water Act this month. It should have been done by now.”

During the 2025 spring election, the Liberal Party platform said they would “immediately introduce and pass legislation affirming that First Nations have a human right to clean drinking water.”

In June, provincial environment ministers in Ontario and Alberta called on the Carney government to abandon that plan, saying they feared it would “undermine competitiveness” and “delay project development.”

Despite the provincial pressure, Gull-Masty said over the summer the federal government was still planning to table a First Nations water bill “this fall.” As of Nov. 13, no such bill had been introduced.

The bill isn’t the answer for everyone. When a parliamentary committee studied it last year, Chief Tuccaro appeared as a witness and said he was in “total opposition” to it because of the powers it could hand Alberta.

Chief Sheldon Sunshine of Sturgeon Lake Cree Nation, in Treaty 8 territory, had also told the committee in October “this bill does not meet our needs or expectations.” He said it didn’t meaningfully incorporate inherent and Treaty Rights to water.

Asked whether Mikisew Cree First Nation still opposes the bill, even though the national chief was calling for its reintroduction, public relations director Tanya Adams said the nation’s position remains the same.

“The national chief stood with us to support our fight against the treat and release of toxic tailings into our water. We thank her for that. Unfortunately, she took this opportunity to reiterate the Assembly of First Nations executive’s support for Bill C-61 [the First Nations Clean Water Act] — something we have opposed and continue to oppose,” Adams said.

Adams said the bill would create “two tiers of drinking water guidelines.” The bill would establish standards for drinking water on First Nation lands as meeting the level of quality for either federal guidelines, or some other standards “in place in the province or territory where the First Nation lands are located.”

It also makes a distinction between water and “source water,” or the untreated fresh water that becomes drinking water, and allows the federal government to enter into agreements with provinces with respect to protecting it.

Mikisew Cree First Nation is worried these kinds of definitions surrender control over water to Alberta, while Canada’s constitution says the federal government has jurisdiction over navigable waters.

“This legislation will do nothing for our nation on the issue of toxic tailings,” Adams said, calling it “anti-treaty.”

She said the First Nation’s position was shared by many chiefs and nations across Canada.

A request for comment sent to the national chief’s office was not returned by publication time.

The Carney government’s first budget, released this month, does propose $2.3 billion over three years to renew the First Nations Water and Wastewater Enhanced Program, maintaining about 800 projects.

But a steering committee for Treaty 6, 7 and 8 territories said Nov. 5 that the funding for First Nations was “dramatically insufficient” to address infrastructure gaps across Alberta, especially for clean water.

Chief Troy Knowlton of the Piikani Nation near the Alberta-Montana border, called it “a small drop in the giant bucket that Canada created.”

The Narwhal’s reporters are telling environment stories you won’t read about anywhere else. Stay in the loop by signing up for our free weekly dose of independent journalism.

In a speech from the throne that largely focused on plans to steer Canada through the COVID-19 pandemic’s immediate health and economic crises, the federal government said climate action will be an essential part of efforts to create new jobs and stimulate an economic recovery. 

The speech, delivered on Wednesday by Governor General Julie Payette, opened a new session of Parliament and laid out the government’s priorities as Canada faces rising COVID-19 cases, double-digit unemployment and the ever-pressing challenge of reducing greenhouse gas emissions. 

“Climate action will be a cornerstone of our plan to support and create a million jobs across the country,” the speech said. 

“This is where the world is going. Global consumers and investors are demanding and rewarding climate action.”

Governor General Julie Payette arrives at the the Senate, before delivering the speech from the throne. Photo: Sergeant Johanie Maheu / Rideau Hall

The new and renewed commitments to climate action were welcomed by environmental organizations.   

“[They] acknowledged that this is where the world’s economies are going and that Canada needs to get in the game and stay in the game of producing low carbon and clean energy and clean technology solutions,” Clean Energy Canada executive director Merran Smith said. 

Smith said there were great signals in the throne speech and she will be watching to see how the government puts its commitments into action.

“The rubber hits the road when we see the budget update and when we see the climate plan,” she said.

The government promised a fiscal update this fall. Until then, here are some highlights from the Trudeau government’s throne speech commitments. 

A forthcoming plan to exceed 2030 climate targets

The federal government reiterated its commitment to exceed Canada’s 2030 climate targets, promising to “immediately” bring forward a plan. The government also promised to legislate its goal of net-zero emissions by 2050 and to continue pricing carbon pollution.

Canadians “know climate change threatens our health, way of life and planet. They want climate action now, and that is what the government will continue to deliver,” the speech said.

Under the Paris Agreement, the federal government committed to reduce greenhouse gas emissions by 30 per cent below 2005 levels by 2030. 

Projections released in December 2019 show Canada will miss its emissions target by 77 million tonnes — roughly the annual emissions of 16.6 million cars — based on existing measures or those under development.

Isabelle Turcotte, director of federal policy at the Pembina Institute, praised the government for amping up its climate commitments. 

“The most exciting and, I think, concrete example of that is that they have a new plan to meet and exceed the 2030 target, and we’re really looking forward to seeing it,” she said.

“We’re excited to see them reiterate that they’re going to create an accountability mechanism to make sure that Canada stops missing its climate targets,” she added.

The government reiterated a commitment to support investments in renewable energy and to move forward with the Clean Power Fund — a $5 billion fund to support electrification of industry — that the Liberals committed to in their election platform.

The speech also promised investments in transit, charging stations for electric cars and to make zero-emissions vehicles more affordable.

“No one was expecting a lot of details in the speech in terms of funding envelopes, specific programs, or details in terms of how we will achieve or move on these really key objects,” Turcotte said.

 “But the direction, the tone and the vision is that climate action is really a cornerstone of rebuilding a stronger economy and that’s really key.”  

The Governor General Julie Payette delivers the speech from the throne, which introduces the government’s direction and goals, and outlines how it will work to achieve them. Photo: Sergeant Johanie Maheu / Rideau Hall

A plan to create a million jobs and transition the economy 

Unemployment in Canada has been in the double-digits for much of this year. The number of people who don’t have enough work is substantially higher than it was before the pandemic.

“Women, racialized Canadians and young people have borne the brunt of job losses,” the speech said.

The government promised to do “whatever it takes” to support people and businesses through the economic crisis, pledging to create more than one million new jobs in an effort to restore employment to pre-pandemic levels.

“This throne speech recognized that tackling coronavirus inequality and climate inequality go hand-in-hand,” Jesse Firempong, a climate justice spokesperson for Greenpeace Canada, said in a statement. 

“To turn this into real change for impacted communities — including to ensure they benefit from the green jobs promised today — we need to see fully funded plans in the upcoming ministerial mandate letters and economic update,” Firempong said. 

“The women, Indigenous Peoples and racialized and low-income communities on the frontlines of both crises should be front and centre in an equitable, feminist, green recovery.” 

In the speech, the government pledged to create thousands of jobs in energy efficiency building retrofits.

It also committed to launching a new fund to attract investments in the manufacturing of zero-emissions products and to cut the corporate tax rate in half for green manufacturing companies.

“A good example of adapting to a carbon-neutral future is building zero-emissions vehicles and batteries,” the speech said.

“Canada has the resources — from nickel to copper — needed for these clean technologies. This — combined with Canadian expertise — is Canada’s competitive edge.”

Mining for copper isn’t without controversy in Canada, especially after a tailings dam burst in 2014 at the Mount Polley copper and gold mine, which sent 25 billion litres of contaminated materials into B.C. lakes and rivers. 

The speech from the throne promised charging stations for electric cars and to make zero-emissions vehicles more affordable. The speech also indicated Canada could play a role in building zero-emissions vehicles and batteries. Photo: mariordo59 / Flickr

Vince Gasparro, managing director of corporate development and clean energy finance at Vancity Community Investment Bank, called the government’s decision to cut the corporate tax in half for green companies a “big, big win.”

“It improves the profitability of these companies and allows them to expand their businesses…and it helps attract capital,” he said.

“The ability to attract private capital into the renewable energy market … was always a critical component,” he said, noting the federal government won’t be able to meet goals such as becoming carbon neutral by 2050 without the private sector’s help.

Protecting nature and investing in climate mitigation

The speech said the pandemic has reminded Canadians of the importance of nature. 

“The government will work with municipalities as part of a new commitment to expand urban parks, so that everyone has access to green space,” it said.

The government reiterated its promise to protect 25 per cent of Canada’s land and oceans in five years and to use “nature-based solutions to fight climate change.”

The speech included commitments to invest in measures to reduce the impact of floods, wildfires, and other climate related disasters. 

What’s an intact forest worth? The tricky task of quantifying Canada’s nature-based climate solutions

Modernizing the Canadian Environmental Protection Act

The speech also committed to modernizing the Canadian Environmental Protection Act (CEPA), a move welcomed by Ecojustice executive director Devon Page, who noted in a statement that the legislation hasn’t been updated for two decades.

The act “is no longer up to the task of protecting Canadians, especially those in vulnerable situations, from toxic substances and pollution,” he said.

“Crucially, a modernized CEPA must include the right to a healthy environment.”  

Page pointed to a September report from the UN Special Rapporteur on hazardous substances and wastes that highlights Canada’s ongoing failure to protect Indigenous and racialized communities — the same communities most impacted by COVID-19 — from the worst effects of rising greenhouse gas emissions. 

“The report explicitly calls for Canada to legislate the right to a healthy environment,” Page said.

The Narwhal’s reporters are telling environment stories you won’t read about anywhere else. Stay in the loop by signing up for our free weekly dose of independent journalism.