Canada’s political class is in full-blown chaos after Prime Minister Mark Carney’s government quietly unveiled a controversial new pipeline plan — one so explosive it immediately sparked national backlash and triggered the resignation of a top Cabinet minister. And now, to calm the firestorm, Carney’s own energy chief is scrambling to convince Canadians the project isn’t anywhere near a done deal.
Speaking to POLITICO from British Columbia, Energy Minister Tim Hodgson tried to downplay the fury erupting across the country, using a homespun analogy that fooled no one:
“We’re not serving a cake yet — we’re just buying the ingredients.”
Translation: We’re deep in the process, but please stop yelling.
Carney’s Pipeline Gamble Blows Up Immediately
The new Ottawa–Alberta agreement marks a stunning reversal of Canada’s Trudeau-era climate regime. The MOU opens the door for a privately funded oilsands pipeline — a massive political U-turn after nearly a decade of Liberal anti-pipeline activism. And in doing so, Carney’s government has detonated its own internal unity.
Within hours of the announcement, Steven Guilbeault, one of Trudeau’s top environmental architects and a Carney Cabinet member, quit on the spot. His resignation was a direct protest against Carney tossing out huge portions of the Trudeau climate platform — including the emissions cap, “greenwashing” rules, clean-energy mandates, and even a possible return of oil tankers to the B.C. coast.
The MOU Carney signed with Alberta Premier Danielle Smith was treated like a business-world coronation, complete with standing ovations. But behind the applause, nearly everything is still theoretical — because neither province nor federal officials want taxpayers anywhere near the cost of a multibillion-dollar pipeline gamble.
No investor, no route, no final proposal.
Just signatures, applause, and a Cabinet rebellion.
Hodgson Tries to Put Out the Fire
Hodgson insists it’s “premature” to panic about a pipeline emerging from Alberta to British Columbia’s coast — insisting no developer has submitted a plan, route, or detailed pitch. But he also admitted the government has set a July 1 deadline for corporations to bring their offers to the table.
Those proposals must also satisfy multiple political minefields: the B.C. government, First Nations groups, environmental regulators, and a federal leadership already losing control of its own party.
Carney Dismantles Trudeau’s Climate Legacy
Carney has spent months methodically pulling apart the green policies he once publicly supported during the Trudeau years. As Trudeau’s climate envoy, Carney preached strict emissions limits and aggressive climate action — but as prime minister, he’s now tearing much of it down.
The new MOU eliminates:
- Trudeau’s oil and gas emissions cap
- His clean-energy regulations
- Corporate “greenwashing” penalties
- And potentially, the long-standing tanker ban on B.C.’s northern coast
Guilbeault, who helped build all those policies, watched them collapse in a single afternoon — then walked.
Hodgson insists Carney hasn’t abandoned environmental goals, pointing out the MOU still affirms the distant promise of net-zero emissions by 2050. It also adds methane reduction targets and pressures Alberta to negotiate a carbon price hike from $95 to $130 per ton — an economic grenade in Alberta’s oil patch.
B.C. Premier Calls the Pipeline an “Energy Vampire”
British Columbia Premier David Eby blasted the proposal, calling the pipeline an “energy vampire” overshadowing billions in LNG projects already underway.
Hodgson brushed off the insult, insisting Ottawa and B.C. are “constructive partners,” pointing out that B.C. has more projects on Canada’s major project list than any other province. In typical Ottawa spin, Hodgson framed the relationship as “productive,” despite the premier dragging the pipeline in national interviews.
Carney Still Obsessed With Trump
Carney, once the U.N.’s climate finance czar, rode into office campaigning on one promise: that he was the man who could protect Canada from Donald Trump’s economic agenda. Now, faced with domestic revolt, he’s shifting course, claiming global realities demand a “new path.”
In reality, the backlash is simple:
Carney is ripping apart Trudeau’s climate legacy to buy political peace with oil-rich provinces — and losing his own Cabinet in the process.
Ottawa Scrambles to Keep Relations Tidy
To soothe tensions, Hodgson highlighted recent cooperation with B.C. officials over the impact of Trump’s softwood lumber tariffs. When B.C. asked for help, Hodgson said Ottawa “jumped on a plane” and worked out an aid package for steel and lumber workers.
The message: We’re listening. Please don’t torpedo our pipeline plan.
The Bottom Line
This pipeline fight is more than a policy debate — it’s a full-scale identity crisis inside Canada’s Liberal Party:
- A Cabinet minister has already resigned.
- Environmental groups are enraged.
- B.C. is signaling rejection.
- Alberta is cautiously optimistic.
- Investors haven’t even shown up yet.
- Carney is shredding Trudeau’s climate legacy at record speed.
And all the while, the energy minister insists:
“The cake isn’t baked.”
But Canadians know the truth:
The oven is preheated, the ingredients are on the counter, and Ottawa has already put on the apron.