Liberal Members of Parliament worked to minimize the appearance of internal conflict on Wednesday, as the federal government prepares to finalize a significant new energy agreement with Alberta. The deal, expected to be signed imminently, could see Prime Minister Mark Carney's government outline a conditional pathway for the construction of a new oil pipeline to the British Columbia coast.
Minister Hodgson Briefs B.C. Caucus
According to a government official, Energy and Natural Resources Minister Tim Hodgson was scheduled to brief the Liberal B.C. caucus on Wednesday morning. The purpose of this meeting was to provide MPs with an update on the status of negotiations and to allow them to ask questions regarding a new memorandum of understanding (MOU) being developed between Prime Minister Carney and Alberta Premier Smith.
This potential agreement has already faced strong opposition from coastal First Nations and B.C. Premier David Eby of the NDP. Premier Smith has publicly stated her desire for the deal to include a commitment to repealing or pausing a suite of environmental policies established under former Prime Minister Justin Trudeau, in exchange for creating a path forward for a new Alberta-to-B.C. bitumen pipeline.
Skepticism and Conditions from Liberal MPs
In the days leading up to the expected announcement, Liberal MPs from British Columbia have been vocal about the conditions necessary for any future pipeline approval. They have consistently stated that such a project would require the support of First Nations in the region, as well as the consent of Premier Eby's government. Prime Minister Carney himself reiterated these conditions in the House of Commons on Tuesday.
Despite these assurances, concerns have persisted within the caucus about the implications of the impending deal. Questions revolve around how supporting a new fossil fuel infrastructure project aligns with the Liberal party's core mission to drastically reduce Canada's carbon emissions.
Expressing this skepticism, Ontario Liberal MP Nathaniel Erskine-Smith told reporters on his way into the weekly caucus meeting that he is "a little skeptical of grand bargains." He referenced his experience living through a previous major agreement, which he did not believe ended well.
Learning from the Past: The Trans Mountain Precedent
Erskine-Smith was alluding to the deal struck under Prime Minister Trudeau with former Alberta Premier Rachel Notley. That agreement saw the federal Liberal government throw its support behind the Trans Mountain pipeline expansion in exchange for Alberta adopting the national carbon pricing plan.
That bargain ultimately unraveled when Notley withdrew her support for the climate plan following a court ruling against the pipeline project. In 2018, the Trudeau government took the extraordinary step of purchasing the pipeline from Kinder Morgan for $4.5 billion to ensure the expansion would be completed.
Erskine-Smith indicated he would reserve final judgment until the details of the new MOU are revealed on Thursday, stating, "I'll look at the overall picture of the deal... and I'll have lots to say once I see the details."
Offering a different perspective, Calgary MP Corey Hogan, who served as a deputy minister in the Alberta government during the Trudeau-Notley negotiations, argued that the current situation is distinct. He emphasized that the present conversation is centered on the need to diversify Canada's global market access for its resources.
Hogan acknowledged the anxiety surrounding the pending announcement, noting, "I think that before anything concrete comes out, is always a moment of maximum anxiety." He expressed hope that Ottawa could secure a deal with Alberta that would see Premier Smith's government commit to strengthening the province's industrial carbon pricing system and increasing support for carbon capture and storage technology—key asks from the federal government in exchange for facilitating a new pipeline pathway.
