The ministers of the Environment and of Natural Resources announced what they called “an interim approach” to federal environmental reviews on Wednesday – an approach that will have an immediate effect on how two major pipeline projects are being evaluated: the Energy East pipeline project and the Trans Mountain Expansion Project.
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Pipelines and natural gas export terminals proposed in the country will now be subject to a climate test, which will seek to determine how the project will impact greenhouse gas emissions, Canadian officials announced Wednesday.
National Resources Minister Jim Carr says the government will so kick in more cash so First Nations can participate better.
The Trudeau government claims that changing the way major energy projects are reviewed will restore Canadians’ confidence in the system but, in fact, the measures will simply further complicate pipeline approvals.
The coastal gas shipping terminals, backed by companies including Royal Dutch Shell Plc and Petroliam Nasional Bhd., are part a global contest to quench Asian demand for the fuel and have already been outpaced by Australia and the U.S. The Pacific NorthWest LNG project proposed by the Malaysian company known as Petronas is among those affected by the new rules.
The federal National Energy Board issued an annual report on the prospects for the Canadian energy sector in an era when lower crude oil prices are restricting vitality. “What we are going to roll out very soon, as we promised in our election campaign, is to establish a clear process which will consider all the greenhouse gas emissions tied to a project, which will build on the work already done”.
At least one advocate hailed the changes as more evidence of a new consultative, environmentally friendly approach to resource development, but complained that Energy East would be allowed to proceed under the new, transitional process.
“The process is done and it was carried out under those bogus Harper rules”, said Grand Chief Stewart Phillip, the president of the Union of British Columbia Indian Chiefs on Thursday.
Prime Minister Justin Trudeau’s government is changing the approval process for pipelines and other energy projects in Canada, requiring more thorough environmental and emissions reviews in a bid to win public support for the projects.
Canada is set to take measures to ensure consistency with these principles for the two projects.
TransCanada spokesman Mark Cooper said the company needs time to digest the new rules.
“Almost 75% of the Energy East pipeline contents is for export (China, Europe, US) and not for eastern Canadian refineries”, said Daniel Green, Deputy Leader of the Green Party of Canada.
“The Conservatives’ opposition day motion is inconsistent with our electoral platform commitment to review Canada’s environmental assessment processes and modernize and rebuild trust in the National Energy Board”, Cameron Ahmad, a spokesperson for the Prime Minister’s Office, said in a statement.
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“Projects will only get done if they’re done sustainably and responsibly”, McKenna added.
