Unceded Anishinaabe Algonquin Territories [OTTAWA], 2 December 2025:
In response to the new Canada-Alberta Memorandum of Understanding (MOU), Caroline Brouillette, Executive Director of Climate Action Network Canada, issued the following statement:
“Far from striking a grand bargain, the federal government just surrendered to the demands of the fossil fuel industry and its provincial lackeys, sacrificing key tools to protect the environment and communities. This agreement will threaten Indigenous rights, increase greenhouse gas emissions, and embolden climate deniers.
“It’s unclear what Prime Minister Carney thinks he’s gained through this agreement, but it’s clear what he’s lost: his bargaining power, large swaths of progressive voters, and any shred of environmental credibility.
“For months, our network and members have been warning this government about the consequences of ignoring civil society and Indigenous Peoples’ concerns about the risks of backtracking on hard-won climate and reconciliation commitments. Now, this MOU has opened the door to higher environmental impacts to sensitive ecosystems, rising greenhouse gas emissions, disregard for British Columbians and Coastal First Nations, expensive legal challenges, and high financial costs to be borne by Canadian taxpayers. All in exchange for commitments to marginally improve Alberta’s already-flawed implementation of the industrial carbon price.”
The provisions outlined in the MOU include:
- A commitment that the federal government will designate a new Alberta oil pipeline as a “project of National Interest”;
- Promising a potential exemption to the oil tanker moratorium for oil exports from this pipeline;
- Expanding the Trans Mountain pipeline to transport an additional 300,000 to 400,000 barrels per day, even though the project’s price tag has already ballooned far beyond initial estimates and cost Canadian taxpayers at least $35 billion;
- Agreement that the industrial carbon price will ramp up to $130/tonne (within no specified date), rather than the previously-set $170/tonne in 2030;
- Scrapping the planned cap on emissions from the oil and gas industry—Canada’s most-polluting sector, whose emissions have skyrocketed over the last two decades;
- Postponing requirements for oil and gas companies to reduce methane emissions (the low-hanging fruit of emissions reductions) until 2035;
- Exempting Alberta from the Clean Electricity Regulations, which opens the door for other provinces to demand similar carve-outs;
- Using electricity transmission interties across Western provinces to power oil and gas production, Carbon Capture, Utilization, and Storage, and AI data centres—rather than to electrify transportation and home heating and cooling, which would improve energy security and affordability for households; and
- Additional public subsidies for the oil and gas sector through the Pathways Alliance carbon capture project and tax breaks for Enhanced Oil Recovery.
Notably, the MOU excludes any mention of Indigenous nations’ right to Free, Prior, and Informed Consent, or any acknowledgement of B.C. Coastal First Nations’ long-standing position against oil tankers on the North Coast.
“By resigning from Cabinet, Minister Steven Guilbeault is showing Prime Minister Mark Carney the political consequences of trampling on climate action and Indigenous rights,” added Caroline Brouillette. “We honour Minister Guilbeault’s courage and integrity in taking a stand against this agreement—and we hope it helps the Prime Minister understand the cost of giving all the leverage to the oil and gas industry, and no benefit to Canadians.”
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Canada’s farthest-reaching network of organizations working on climate and energy issues, Climate Action Network – Réseau action climat (CAN-Rac) Canada is a coalition of close to 200 organizations operating from coast to coast to coast. Our membership brings environmental groups together with trade unions, First Nations, social justice, development, health and youth organizations, faith groups and local, grassroots initiatives.
For more information or to arrange an interview, contact:
Vicky Coo, Communications Manager
comms@climateactionnetwork.ca
Photo credit: Jeff McIntosh, The Canadian Press