Trans Mountain Pipeline Launches Amid Controversy Over Canada’s Climate Commitments and Oil Exports

The Trans Mountain pipeline, Canada’s most controversial oil project, traverses two provinces, a national park, multiple water bodies, and numerous First Nations communities before ending at an oil storage facility on the Pacific coast.

Despite over a decade of protests, cost overruns, and delays, oil started flowing in May without much fanfare, and the first shipment was sent to China. The pipeline is set to transport nearly 900,000 barrels daily, significantly increasing tanker traffic.

Justin Trudeau’s 2015 election saw Canada committing to strong climate action, including a nationwide carbon tax. However, despite these promises, Canada continues to emit greenhouse gases at levels far above its 1990 benchmarks and plans to export record volumes of oil. This contradiction between climate promises and fossil fuel investments has drawn significant criticism.

The Trans Mountain project, initially proposed in 2012 by Texas-based Kinder Morgan, aimed to triple the capacity of an existing pipeline to give Canada better access to global markets and close the price gap caused by limited pipeline capacity.

Trudeau’s government approved the project in 2019, touting it as a major investment in Canada’s future, but faced immediate backlash and legal challenges from environmental and Indigenous groups.

In a surprising move, the federal government bought the pipeline from Kinder Morgan to ensure its completion, emphasizing its economic importance. Critics, however, saw it as a financial blunder. Trudeau justified the purchase as necessary for balancing economic growth with environmental protection, despite significant project delays and cost overruns pushing the budget far beyond initial estimates.

As the pipeline became operational, predictions suggested Canada could hit record oil production levels, contradicting its emissions reduction goals. A recent government report confirmed that Canada is not on track to meet its 2030 climate targets. Despite progress, the federal government’s ability to achieve significant emissions reductions remains in question.

Canada’s oil industry continues to receive substantial subsidies, and several controversial projects have been approved under Trudeau’s government. Global emissions agreements do not penalize Canada for increased oil production, leading to a “green paradox” where exporters rush to market their oil before stricter regulations take effect. This approach undermines Canada’s climate commitments.

Alberta, the main source of Canada’s oil, has resisted federal climate policies despite compromises like the Trans Mountain pipeline approval. The federal government announced plans to cap emissions from the oil and gas sector by 2026, but the proposal faces strong opposition from Alberta. Critics argue that the cap’s many exceptions and vague penalties may render it ineffective in reducing emissions.

Recently, the Canadian government expressed a desire to divest from the Trans Mountain pipeline, considering a sale to a consortium of First Nations. However, many Indigenous groups oppose the idea, citing economic and environmental concerns. The pipeline’s high costs and environmental risks highlight the ongoing conflict between Canada’s oil industry ambitions and its climate commitments.