Fourteen of Canada’s biggest oil and gas executives, backed by Conservative leader Pierre Poilievre, are turning up the heat on the federal government’s carbon pricing system. They've made it clear: they want the policy scrapped. Their argument? The current system is making it harder for Canada’s energy sector to stay competitive.
This coordinated move comes as Canada faces new global pressures. With U.S. tariff threats looming, Canadian energy leaders are calling for a shift in priorities—from climate targets to economic stability.
At the center of the debate is the Pathways Alliance, a group representing the country’s top oil sands producers. Their massive carbon capture project was shaped around the existing pricing policy. But now, even they are questioning whether the current approach works.
The federal carbon pricing system, introduced in 2019, was supposed to curb pollution. It charges companies when their emissions go over a set limit. Over time, that was meant to push them toward cleaner operations.
But this week, things escalated. The 14 oil and gas CEOs signed an open letter demanding the repeal of the policy. They argue that letting provinces design their own carbon strategies would make more sense.
“This is about recognizing the unique needs of each province and industry,” one executive stated. They believe Ottawa’s one-size-fits-all approach is doing more harm than good.
Pathways Alliance didn’t hold back either. In a public statement, the group labeled the carbon pricing system as “uncompetitive”. According to them, it’s slowing down growth in Canada’s vital oil sands sector.
The push to end carbon pricing isn't just coming from business leaders. Pierre Poilievre, leader of the Conservative Party, has made it a top campaign issue.
He’s promised to scrap the system if he wins the April 28 election. Instead, Poilievre plans to roll out federal tax incentives to motivate emissions cuts. Under his plan, provinces would get the final say on whether and how to price carbon.
It’s a sharp contrast to the current model. And it’s clearly gaining traction among energy executives who say they’re tired of federal red tape.
This policy shift could throw a wrench into Pathways Alliance’s plans. Their proposed multi-billion-dollar carbon capture and storage (CCS) project was designed around the federal carbon pricing model. Without it, the entire structure of their investment might need to change.
Still, Pathways isn't sitting on its hands. The group has been in ongoing discussions with the federal government, exploring a potential backup plan if the pricing system disappears. But so far, no deal has been made.
And that uncertainty is starting to weigh on investor confidence.
>> In Other News: CMB.TECH and MOL Sign Landmark Agreement for Nine Ammonia-powered Vessels
One thing energy leaders seem to agree on: they need predictability. Constant changes in federal policy make it harder to plan long-term projects, especially ones involving massive capital and tech investment.
“Companies can adapt, but they need a clear runway,” said one executive. “It’s the stop-and-start nature of federal policy that’s hurting us.”
The CEOs behind the open letter aren’t denying climate change. They say they’re still committed to cutting emissions. But they believe economic growth doesn’t have to take a backseat to environmental goals.
This pushback reveals a deeper divide in Canada’s climate conversation. How do you balance environmental responsibility with economic reality?
Critics of the current carbon pricing model say it’s tilted too far toward idealism. Supporters argue it’s one of the few tools Canada has to hit its climate targets.
Meanwhile, the rest of the world is watching. Countries like the U.S. are using tax credits and market incentives to drive clean innovation. That’s the approach Poilievre and the oil CEOs say they prefer.
With an election just weeks away, the future of Canada’s climate policy could hinge on who wins.
If Poilievre takes office, expect a swift move away from carbon pricing toward tax-based incentives. If the current government holds on, the carbon system will likely stay—though maybe with some tweaks to address competitiveness concerns.
One thing’s for sure: this isn’t just a political fight—it’s a business one too. And the outcome will shape Canada’s energy landscape for years to come.
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Inside This Issue ✈️ SAF Isn’t a Buzzword Anymore - It’s 2025’s Breakout Fuel 🏅 Global Energy Prize Awarded to Three Scientists From China, USA and Russia ⚡ ACES Delta I Hydrogen Production and St...
Inside This Issue 🛢️ Exxon's Gas Strike, EPA Smackdown, and Carbon Curveball 🏭 MHI Awarded Contract for Basic Design of Japan's Largest CO₂ Capture Plant at Hokkaido Electric Power's Tomato-Atsuma...
Inside This Issue 🌊 The Quiet Rise of Offshore CO2 Storage: North America's Emerging Frontier for Carbon Capture 🍁 Canada Invests in Carbon Capture and Storage in Alberta 🛰️ Vortex Energy Finalize...
Spiritus Technologies PBC Plans Santa Fe, New Mexico, Operations
Spiritus Technologies PBC, a company engaged in sustainable carbon removal, plans to establish operations in Sante Fe, New Mexico. The project is expected to create 40 jobs. The company will lease...
ACES Delta I Hydrogen Production and Storage
World’s largest green hydrogen storage facility being developed in Utah with funding from the U.S. Department of Energy (DOE) Loan Programs Office will help scale low-carbon energy for western stat...
Partnership Signals Breakthrough Collaboration in Carbon Removal and Sustainable Fuel Development for $1 Billion Clean Fuels Facility Monroe Sequestration Partners (MSP), a premier carbon storage ...
National Carbon Capture Center Launches Novel UNOGAS MK3 Solvent Testing
A significant step forward in carbon capture is underway at the National Carbon Capture Center, where KC8 Capture Technologies' (KC8) advanced UNOGAS system – featuring the innovative UNO MK3 solve...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.