Over two days last week, Prime Minister Mark Carney once again labelled the energy policies of his predecessor, Justin Trudeau, as unrealistic. While he did not say it explicitly, Carney extended Trudeau's deadlines for reducing industrial greenhouse gas emissions and reduced planned increases to Trudeau's industrial carbon tax in his Friday announcement on constructing a new bitumen pipeline from Alberta to British Columbia.
Carney's Shift in Energy Strategy
On Thursday, while announcing his plan to create a national electricity strategy, Carney made it clear that natural gas, a fossil fuel, will be an important component of the electricity grid going forward, in stark contrast to his predecessor. Previously, Carney had scrapped signature Trudeau policies such as the consumer carbon tax, the oil and gas emissions cap, and electric vehicle mandates.
Acknowledgment of Missed Targets
In a year-end interview with CBC News in December 2025, Carney acknowledged that Canada would not reach Trudeau's 2030 and 2035 emission reduction targets under the former PM's climate change plan. He criticized the plan for having "too much regulation, not enough action" with a lot of talk "and then nothing happens", adding that he was more interested in results.
Remaining Hurdles for Oil and Gas Expansion
Even with Carney's changes, significant hurdles to the expansion of Canada's oil and gas sector passed during the Trudeau era remain in place. These include the Impact Assessment Act and the Oil Tanker Moratorium Act. Additionally, there is the challenge of securing agreement from Indigenous groups along the proposed pipeline route, as well as the prospect of legal challenges. British Columbia Premier David Eby also opposes the pipeline project.
Public Skepticism
Many Canadians remain skeptical that anything will change, even after Carney scrapped some of the Trudeau government's anti-growth policies and pledged to build major infrastructure projects at "speeds not seen in generations." There is concern that Carney might allow the proposed pipeline to collapse under its own weight and claim he tried. While that is possible, for now we take Carney at his word that he wants to get this new pipeline built.
For that reason, we will not make the perfect the enemy of the good by pointing out the flaws in the approval process that Carney says he is trying to streamline going forward. But Carney has to deliver, as well.
