Charles-Édouard Têtu
Analyst, Climate and Energy policy
Canada doesn’t need more fossil fuel infrastructure. In the wake of the Building Canada Act’s adoption, pipelines and fossil fuel infrastructure are being proposed as national interest projects, even though they are costly, risky and out of step with public opinion, especially in Quebec. The province has long rejected fossil fuel supply projects and opted for a smarter future with renewable energy. Ironically enough, it is precisely here that yet another new project concept for an LNG plant is being touted.
In a letter to Prime Minister Mark Carney and government ministers, more than 100 organizations illustrated how an east-west electricity grid could serve national interests by prioritizing renewable energy and Indigenous rights.
This united call is aligned with Quebecers’ long-standing opposition to fossil fuel proposals running through the Saint Lawrence River and their communities.
In May, hundreds of groups and individuals called on federal and Quebec politicians to oppose new pipelines. Earlier this year, in February, within a week of the media’s renewed interest in fossil fuel projects, such as Energy East and GNL Quebec — and following US President Donald Trump’s return to the White House — a coalition of 100 Quebec organizations and experts from environment, labour, student, urban planning and academia also issued an unequivocal statement reiterating that Quebec civil society wants to maintain its long-standing opposition to fossil fuel project expansion.
A Leger survey showed that, when presented with a choice between investments in renewable energy or fossil fuels, three out of four Quebecers would choose the former, further indicating that pipelines are a challenge to so-called Canadian unity.
This public consensus against fossil fuel development wasn't formed lightly but rather through decades of mobilization, culminating in 2022 when Quebec adopted legislation prohibiting oil and gas exploration. This secured the province an appointment as co-president of the Beyond Oil and Gas Alliance, a global group of jurisdictions committed to phasing out fossil fuels and implementing policies to do so.
Any new oil and gas pipeline or facility project will face a fundamental reality: the lack of market need. Europe's demand for natural gas may already have peaked, in part due to aggressive efforts to accelerate electrification and expand renewable resources. Even without taking into account the fact that an east-west pipeline would be useless for Asian markets, with the continent's energy needs being met by a mix of renewables, electrification, efficiency and nuclear energy; Canadian gas can’t compete in the Asian market dominated by the United States and Qatar.
Betting, once again, on the same fossil-fuel horse might be what keeps Canada from becoming the energy superpower it could be.
Building massive infrastructure to carry fossil fuels is a mistake in the face of global market volatility. Fossil fuel expansion and profiteering are primary drivers of inflation and the cost-of-living crisis. New pipelines are an investment in yesterday's energy model while the world rapidly shifts to renewables.
As the global energy transition accelerates, they could easily become costly “stranded assets.” Federal financing of the Trans Mountain pipeline expansion should serve as an example. Not only did the cost skyrocket from $4.5 billion to $34 billion to cover a fourth of the distance of a west-east project, but it is also still not achieving full capacity.
Furthermore, fossil fuel pipelines are notorious for taking years before becoming operational. Trans Mountain was approved in 2019 and started transporting fuel in 2024. Projects such as Energy East and GNL Québec would not be different and aren’t a “quick fix” to uncertainty around trade. It’s also important to note that even if Energy East were operational today, it could not close the capacity gap needed for full energy autonomy.
Uncertain times require policy-makers to act fast, but that doesn’t mean forgetting the basics of economics and business by wasting, yet again, public money in sectors that have no future. Canada should take inspiration from the European Union’s response following Russia’s invasion of Ukraine. Launched in 2022, the REPowerEU initiative aims to stop the EU’s dependence on Russian gas by investing in renewables and energy efficiency, which has already helped reduce demand for Russian gas by 18 per cent, with an aim of 26 per cent by 2030.
Betting, once again, on the same fossil-fuel horse might be what keeps Canada from becoming the energy superpower it could be if it were to finally get serious about phasing out oil and gas and focus on solutions that will work in tomorrow’s economy. Building a new deal of Canada's own to answer the crisis, while also answering the country’s energy needs, will only work if public money supports projects aligned with our climate goals.
As the US administration becomes more unpredictable in its climate and trade policies, Canada must invest in its resilience. A real nation-building project is a strong national grid that will increase our economic competitiveness, create lasting jobs, support our climate commitments and shield Canadian households from rising fossil fuel costs.
