CALGARY — CHRIS SEVERSON-BAKER, Executive Director of the Pembina Institute, made the following statement in response to the federal government’s announcement of its second batch of major projects to be referred to its Major Projects Office.
“Today’s announcement recognizes the moral and economic imperative in readying Canada to lead in the low-carbon world, even as some of the new projects will result in significant increases in emissions.
“The North Coast Transmission Line is a positive development, as Canada needs a major increase in electricity infrastructure – generation, transmission, modernization, and distribution – to meet surging demand and set us up for success in what global energy authorities call the Age of Electricity. This project is a step toward connecting the Yukon grid to the B.C. grid, increasing the reliability and affordability of electricity in both regions, and reducing the need for fossil fuel-based back-up systems. That said, clean low-cost electricity is a finite resource and should be prioritized for uses that provide the most value to Canadians over time. While electrifying a critical mineral mine might be a productive use, electrifying power-hungry LNG terminals may represent a serious opportunity cost.
“On critical minerals (Canada Nickel’s Crawford Project, Nouveau Monde Graphite’s Matawinie Mine, Northcliff Resources’ Sisson Mine), while mining operations have the potential to be large emitters, the federal government is right to recognize critical mineral development as a key pathway toward energy security and leadership in the burgeoning low-carbon economy. But Canadians will only realize the full benefits of critical mineral development if it is directly connected to a domestic EV manufacturing sector – and this can only happen if domestic EV demand is bolstered through an updated EV availability policy. As EVs are set to make up a quarter of new vehicle sales in 2025 (well over half in China), we look forward to hearing more from government on how it will ensure Canada is a leader, not laggard, in the global transition to electrified transport.
“The Iqaluit Nukkiksautiit Project is a transformative hydroelectric project, as renewable energy infrastructure in the North helps address longstanding issues that northern and Indigenous governments have been eager to address for decades: energy security, economic development and prosperity, and diesel reduction. The Inuit-led and -owned project supports electrification, grid modernization, and resilience, presenting an enormous opportunity for local and federal cost-savings, emissions reductions, and job creation. Nunavut is currently almost 100% reliant on diesel fuel for heat and electricity. Investments in the North – thanks to local and Indigenous leaders who have been advocating for clean energy action for decades – are investments in a stronger, more self-sufficient Canada. This is true ambitious nation-building.
“On Ksi Lisims LNG, while we respect the Nisg̱a’a Nation’s agency to advance resource projects on their territory, LNG is becoming an increasingly risky economic bet. Yesterday’s World Energy Outlook from the International Energy Agency reported a massive supply of LNG coming online, outpacing demand and reinforcing its prediction that 70% of LNG export projects under construction may not be able to recover their capital costs. The production of gas itself remains a high-emitting sector in Canada even if the LNG terminal itself is electrified. If any new LNG projects proceed, they should do so without public subsidy.
“With all major projects, implementation will be key. As government has promised, all fast-tracked projects must contribute to clean growth and help Canada meet our climate goals, while advancing the interests of Indigenous peoples – including Indigenous leadership and ownership when possible. Projects should align with government’s new Climate Competitiveness Strategy and include consideration of labour rights and benefits, which could take the form of project labour agreements or community benefit agreements as we saw in Budget 2025’s Local Infrastructure Fund.
“While major infrastructure projects can deliver important economic stimulus, this government will also benefit from recognizing that nation-building takes many forms. Decentralized initiatives like building retrofits and the rapid buildout of EV charging infrastructure should be considered for nation-building project status, as they would create massive economic stimulus – including good local jobs and new domestic supply chains – while helping Canadians experience the co-benefits of the clean energy transition in their everyday lives, from cost-savings to better health outcomes.”
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Contact
Brendan Glauser
Senior Director, Communications, Pembina Institute
604-356-8829
