Critics say there is a stark contrast between PM Mark Carney's international reputation as a climate champion and his domestic drive to expand oil and gas production.
Last month, European Commission President Ursula von der Leyen made an unexpected offer to Canada: to become the EU's first ever “associate member”.
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After pushback on the term from member states, most of all Germany, the EU is now pushing for "ever closer association" with Canada, in the latest draft of a joint declaration due to be adopted at the end of the EU-Canada summit which starts today in Montreal.
There is broad consensus amongst member states on closer cooperation with Canada on areas such as defence, critical raw materials, energy, trade and border security.
Just this week the EU's climate chief has told member states they must prepare for increasingly extreme weather, signalling that the Commission is taking climate preparedness seriously. But what about Canada?
Here we look into Canada's policies on oil and gas, the energy transition, carbon pricing and greenwashing.
What is the Pacific Link oil pipeline?
Since taking office in 2025, Canadian Prime Minister Mark Carney has scrapped key policies which would drive down emissions - such as abandoning a planned cap on oil and gas emissions and weakening industrial carbon pricing, according to global NGOs like Climate Action Tracker and Environmental Defence.
At the same time, Carney's government has made it easier for oil and gas projects to get approval. This includes a proposed oil pipeline - the Pacific Link which will carry one million barrels of oil sands bitumen a day from Alberta to the Pacific Ocean off the coast of British Columbia, threatening the habitat of endangered orcas and could increase greenhouse gas emissions up to 18.7 million tonnes.
These decisions mark a significant departure from the climate credentials Carney cultivated as governor of the Bank of England and as the United Nations' special envoy for climate action and finance.
It also raises questions about whether his ambition to turn Canada into a global energy superpower will come at the expense of the country's climate commitments - and whether additional supplies of fossil fuels could slow the transition to cleaner energy in Europe and Asia.
From climate champion to fossil fuel expansion
Carney has a reputation as a skilled statesman and long-time climate champion. This is partly because of his longstanding warnings about the financial risks of climate change.
In 2015, as governor of the Bank of England, he warned that the consequences of global warming could happen sooner than the timelines used by financial markets and lawmakers.
"The catastrophic impacts of climate change will be felt beyond the traditional horizons of most actors - imposing a cost on future generations that the current generation has no direct incentive to fix," Carney said during a speech at Lloyd's of London.
Carney later helped mobilise financial institutions around net-zero commitments.
As PM of Canada, environmental critics say Carney's agenda prioritises energy production, investment and competitiveness over climate policies designed to reduce fossil fuel consumption.
The changes reach beyond his cancellation of consumer carbon pricing, which made households directly pay for their emissions.
Carney's government has also scrapped the electric vehicle mandate, abandoned the proposed oil and gas emissions cap, weakened the national industrial carbon price and relaxed anti-greenwashing standards. Public transport funding has also been massively cut back.
Taken together, the measures risk weakening both sides of Canada's decarbonisation strategy, climate activists argue, citing incentives to move away from fossil fuels and investment in alternatives.
Carney's government has continued to invest in some clean energy projects, but its emphasis on expanding oil and gas production is creating a tension between its climate commitments and its economic strategy.
New oil and gas projects on a faster track
The clearest expression of that shift is the government's push to accelerate approvals for major infrastructure projects.
The 2025 Building Canada Act created a mechanism to designate projects as being in the national interest and exempt them from certain legal requirements.
The legislation was presented as a way to accelerate projects considered strategically important, including developments in critical minerals, renewable energy, nuclear power, ports and hydropower.
But oil and gas projects have featured prominently in the government's plans.
In September 2026, Carney's government introduced a law that would allow projects to be pre-approved in designated regions of national interest, shorten major project reviews to one year and give a federal minister greater powers to remove environmental conditions attached to previously approved projects.
Environmental groups argue that the legislation weakens safeguards for wildlife and reduces public oversight.
LNG expansion and the global race for gas
Carney's energy strategy also includes expanding Canada's Liquified Natural Gas (LNG) export capacity.
The government has backed plans which could double the facility's export capacity from Canada's west coast. It has also signalled openness to developing gas exports from New Brunswick if the province reverses its fracking ban and establishes a domestic production industry.
Ottawa argues it can provide reliable supplies to international partners seeking to diversify their energy sources. Ahead of the EU-Canada summit this week in Montreal, the two blocs are expected to present a feasibility study on long-term LNG exports to Europe, according to a document seen by Euronews.
For Europe, which has sought to reduce its dependence on Russian fossil fuels, additional supplies from politically stable producers could improve energy security. Asian markets are also potential destinations for Canadian LNG.
But greater availability of gas does not translate into a faster energy transition. New LNG terminals and pipelines require substantial investment and can operate for decades. If they encourage long-term gas consumption or divert capital from electrification and renewable energy, they could slow the transition away from fossil fuels.
Esther Bollendorff, fossil-free program manager at the NGO Climate Action Network (CAN) Europe, said Canada shouldn’t become the EU’s next gas supplier, but a partner in building an affordable and resilient energy future.
The environmentalist said the proposed feasibility study on LNG exports to the EU is a "dangerous distraction" from renewables-based electrification and energy efficiency.
"It risks locking in fossil fuel infrastructure, stranded assets and higher bills for consumers on both sides of the Atlantic, while undermining Europe’s climate goals," Bollendorff says.
Green activists worry that expanding fossil fuel supply can influence the choices available to importing countries, potentially making continued gas consumption more attractive than investing in alternatives like wind and solar.
An energy superpower - but for whose benefit?
Carney has presented fossil fuel expansion as a way to strengthen Canada's economic independence and attract international investment. Yet the ownership of the industry complicates the claim that expanding oil and gas will necessarily translate into greater Canadian economic control.
A report by Canadians for Tax Fairness found that the four largest Canadian oil sands producers are 60 per cent US-owned. LNG Canada is a joint venture involving Shell, Petronas, PetroChina, Mitsubishi and Kogas.
That means a substantial share of the capital and corporate interests behind Canada's energy expansion comes from outside the country.
Carney's argument is that Canada can use its energy resources to strengthen its economic position and reduce its vulnerability to external pressure. But if the industry relies heavily on foreign capital and public support, the distribution of benefits and risks becomes a central question.
Climate targets increasingly out of reach
The retreat from climate policy comes as Canada appears unlikely to meet its emissions-reduction commitments.
According to Climate Action Tracker, planned Canadian policies could reduce emissions by just 14 per cent, well short of the country's target of cutting emissions by 40–45 per cent over the same period.
A September 2026 analysis by the Canadian Climate Institute also concluded that Canada would miss its 2030 emissions target, suggesting the shortfall could persist even towards 2050.
