Canada pipeline buy plan will see local controversies

Significance

The firm had threatened to mothball the project by the end of May unless assurances were made that it would eventually be built despite opposition in British Columbia (BC) from First Nations, environmental activists and the BC government. The federal purchase comes with a political cost to the Liberals in Ottawa, who now face further legal opposition from BC’s government.

Impacts

• The likely rightwards shift in provincial politics (Quebec and Alberta elections are coming) will see carbon taxes scrapped.
• Scrapping carbon taxes will hinder federal policy to build pipelines while containing emissions.
• BC will likely fail to gain legal backing for their constitutional arguments about their right to regulate inter-provincial projects.
• The Alberta NDP government’s fortunes will be tied to developing the pipeline successfully.
• The project could cost the Canadian government more than the purchase price in legal fees and construction costs.