{"id":67640,"date":"2026-03-27T11:46:21","date_gmt":"2026-03-27T18:46:21","guid":{"rendered":"https:\/\/energi.media\/?p=67640"},"modified":"2026-03-27T11:46:21","modified_gmt":"2026-03-27T18:46:21","slug":"high-hopes-few-details-as-major-projects-office-hits-six-month-mark","status":"publish","type":"post","link":"https:\/\/energi.media\/news\/high-hopes-few-details-as-major-projects-office-hits-six-month-mark\/","title":{"rendered":"High Hopes, Few Details as Major Projects Office Hits Six-Month Mark"},"content":{"rendered":"

This article was published by The Energy Mix<\/a> on March 27, 2026.<\/em><\/p>\n

By Bob Weber<\/strong><\/em><\/p>\n

Prime Minister Mark Carney\u2019s Major Projects Office is now six months old, just a baby in government years. But those gathered around the newborn\u2019s crib already have plenty of ideas on how they\u2019d like the infant to grow up.<\/p>\n

Some look for an umpire\u2014a neutral agency that simply evaluates big proposals and advises cabinet. \u201cI hope they want someone who\u2019s there to call balls and strikes,\u201d Andrew Leach, an energy and environmental economist at the University of Alberta, told\u00a0The Energy Mix<\/em>. He said the MPO\u2019s role should be to advance such projects, but also to ensure proponents have covered the environmental and consultation bases.<\/p>\n

\u201cYou want someone in the room that when a company comes in and says, \u2018Our project\u2019s just not moving forward,\u2019 (asks) \u2018Have you done the work right?\u2019\u201d\u00a0\u00a0 Others want something more activist, pushing projects that further decarbonization, such as linking interprovincial electricity grids. \u201cIt needs to be a ramp up for renewable energy projects,\u201d said Mark Kalegha, energy finance analyst at the Institute for Energy Economics and Financial Analysis. \u201cInterconnectedness seems to be on their priority list and the MPO is able to help with the regulatory hurdles.\u201d<\/p>\n

A giant lab on regulatory reform would be welcome, say some. \u201cWhat we\u2019re hoping comes out of the Major Projects Office is learnings on how to accelerate reviews and processes without denuding them or making them any less stringent,\u201d said Fernando Melo, public affairs director with the Canadian Renewable Energy Association (CanREA). \u201cI\u2019ve been out to many a project site where you ask, \u2018How many permits are you filing?\u2019 and the answer comes \u2018Oh, five or ten\u2019 \u2026 And I go, \u2018One field.\u2019\u201d<\/p>\n

Others expect it to serve an overall policy goal. \u201cThey\u2019ve been focused on resources and infrastructure, in particular, trade facilitating infrastructure,\u201d said University of Calgary economist Trevor Tombe. \u201cThat, to me, really speaks to the priority on trade diversification that the government has laid out.\u201d<\/p>\n

And some will be grateful if the whole thing doesn\u2019t just turn into another deadening layer of lobbyist-ridden government bureaucracy. \u201c<\/p>\n

It does signal to investors that (their proposal) won\u2019t be one of those Canadian proposals that takes 12 years. That\u2019s the generous side of it,\u201d said Heather Exner-Pirot, senior fellow at the Macdonald-Laurier Institute. But she asks, if excessive regulation is the problem, why not just reduce regulation?<\/p>\n

\u201cThey\u2019ve listed all these regulations that the MPO can bypass\u2014why don\u2019t they work on fixing those if they can be bypassed safely?\u201d<\/p>\n

But all say that attempts to assess the MPO\u2019s direction need context. The office is just one part of a policy package aiming to reduce Canada\u2019s dependence on increasingly unreliable United States trade, boost the country\u2019s economic self-reliance, and move its economy toward a low-carbon future\u2014all at once.<\/p>\n

\u201cJust as important, if not more important than the major projects themselves, is the policy,\u201d said Janetta McKenzie, oil and gas director at the Calgary-based Pembina Institute. She said\u00a0industrial carbon pricing<\/a>, methane regulations, clean electricity regulations, and federal\u00a0investment tax credits<\/a>\u00a0are just as big an influence on where investment goes as anything the MPO does. \u201c<\/p>\n

If the goal is to build a future-proofed Canadian economy that is more resilient to ongoing geopolitical shocks and volatility, then the investment signals need to be strong,\u201d McKenzie said.<\/p>\n

The Signals So Far<\/h2>\n

The signals, so far, haven\u2019t been encouraging for\u00a0climate goals<\/a>. The federal government has junked consumer carbon pricing, tossed oil sands emissions caps, and\u00a0weakened<\/a>\u00a0EV sales mandates. Tough economic times have proved tough for environmental policy, too, said Leach.<\/p>\n

\u201cOnce people became convinced, rightly or wrongly, that Canadian environmental policy was the source of all their woes, there wasn\u2019t much ground there left for the PM. \u201cVoters are very keen on environmental policy as long as it doesn\u2019t cost them anything.\u201d<\/p>\n

For example, the\u00a0memorandum of understanding<\/a>\u00a0now being finalized between Alberta and Ottawa includes a promise of industrial carbon pricing\u2014but also support for a new pipeline, which a Pembina analysis concluded would increase Alberta\u2019s carbon emissions even if that oil was \u201cdecarbonized<\/a>\u201d through capture and storage.<\/p>\n

Leach said national security concerns may now support the project. \u201cAll our pipelines in the U.S. are subject to a presidential permit the president can revoke at any time at our expense,\u201d he said. \u201cIt\u2019s still a conversation that\u2019s in a dark corner, so to speak, but it\u2019s a conversation we should be having.\u201d<\/p>\n

A Pipeline Full of Obstacles<\/h2>\n

But any new line faces considerable obstacles.<\/p>\n

There\u2019s neither a route nor a proponent, and the increased production needed to fill one would require massive upstream investment.<\/p>\n

The MOU signed between Alberta and the feds rules out public financing, but former Alberta energy minister Sonya Savage recently told a CBC podcast that without public support a private proponent is, at best, highly unlikely.<\/p>\n

Still, there may be a financial case to be made, suggested Leach, pointing to 2010, when pipeline bottlenecks forced producers to discount Canadian oil. If that happened again, the discount would now be on roughly twice as much oil.<\/p>\n

\u201cThis is the math that people miss,\u201d he told\u00a0The Mix<\/em>. \u201cEven if you said this (pipeline) would reduce the differential by a buck, that\u2019s four million barrels a day, 365 days a year times 15 years. (The investment) doesn\u2019t look terrible.\u201d Price, he said, is far more important than sheer volume.<\/p>\n

But Canada will likely need to reduce that discount and squeeze out every petrodollar it can, and sustain it over a longer haul that\u00a0may not be realistic<\/a>. Before the current war launched the price of oil, it was languishing around $60 a barrel, with most experts predicting further falls. That market is likely to eventually return once the U.S.-Iran conflict ends. When the missiles stop flying, so will the value of oil.<\/p>\n

Diversified Trade Could Boost Climate Goals<\/h2>\n

But the Carney objective of diversifying Canada\u2019s trading partners could also advance climate goals. The projects currently before the MPO suggest at least some emphasis on clean energy, with wind power and minerals critical to electrification in the mix.<\/p>\n

There\u2019s also a proposal to link electricity gids in northern British Columbia and the Yukon.Climate and energy transition advocates say that is exactly the sort of thing the MPO should be doing to move Canada towards electrons and away from molecules.<\/p>\n

\u201cThe more we integrate provinces and (make them) able to call on each other\u2019s resources, it\u2019s going to be better,\u201d said CanREA\u2019s Melo. \u201cHaving more connectivity will help enable greater decarbonization of the grid.\u201d<\/p>\n

In fact, grid ties are probably the only electricity-related projects big enough to appear on the MPO\u2019s \u201cnation-building\u201d agenda. Solar panels and wind farms are also regulated provincially, putting them outside the MPO\u2019s purview.<\/p>\n

\u201cThe barriers to renewable penetration of electricity generation are provincial policies,\u201d said the University of Calgary\u2019s Tombe.<\/p>\n

Trade diversification could provide another decarbonization prod. Canada will have to meet the environmental standards of those it seeks to trade with. Europe, for example, implemented its carbon border adjustment program in January. The policy imposes a tariff on imports of carbon-intensive products such as steel, cement, and energy that don\u2019t meet EU standards. Melo said if Canada wants to play in those markets, it will have to comply.<\/p>\n

\u201cWith the Canadian government\u2019s stated goal of 50% of exports reaching alternative markets\u2014 the European Union, Japan, and China, which everyone forgets has an industrial carbon price\u2014 there\u2019ll be more and more demand that the goods they import have low-carbon attributes built in.\u201d<\/p>\n

Weighing the Consequences<\/h2>\n

It\u2019s unlikely that Mark Carney, once the UN\u2019s special envoy on climate action, has forgotten the need to reduce carbon emissions. But he\u2019s a central banker, too, used to weighing consequences of action against each other.<\/p>\n

\u201cThe end game is going to be overall policies on consumption and overall policies on production,\u201d Leach said. This may mean a little water in the wine of carbon cuts. Rather than absolute targets\u2014the meeting of which has failed dismally\u2014Canada may instead focus on simply being better than our competitors, some analysts say.<\/p>\n

\u201cSustainability includes financial sustainability,\u201d said Exner-Pirot. \u201cThe goal is not to kill Canadian production, but to make it better. Trying to square the circle involves making Canadian products competitive on carbon intensity, aiming for the good rather than the perfect.\u201d<\/p>\n

The Carney government must now make tough choices in the face of a new world order different than the one we were told to expect, Tombe said. \u201cReality has just thrown a few curve balls at Canada.\u201d<\/p>\n

\u201cI do not see the government having abandoned any consideration at all about climate objectives,\u201d he added. \u201cBut it also keeps in mind other criteria like trade diversification, economic and productivity growth \u2026 (Government) could achieve a lot more if it was singularly focused on climate goals. But it is not. It is balancing lots of objectives.\u201d<\/p>\n

The MPO itself has offered few clues as to its direction and intent. Although CEO Dawn Farrell is a longtime fossil energy executive who shepherded the controversial Trans Mountain pipeline expansion project, she has a non-partisan and even-handed reputation. Still, in testimony last fall before a Senate committee, she\u00a0spoke<\/a>\u00a0approvingly of the carbon intensity of Canadian LNG. She also suggested a new oil pipeline to the west coast would have climate benefits, since much if that oil is used to make components for electric vehicles.<\/p>\n

Some other senior staff<\/a>\u00a0bring past background in renewable energy and in reconciliation with Indigenous communities, but staffers have provided little information about where the office is going. Federal officials have told\u00a0The Mix<\/em>\u00a0that Farrell maintains close contact with Carney and his senior staff, and that \u201call the major calls\u201d will be made by the Prime Minister\u2019s Office.<\/p>\n

It\u2019s early days for the MPO and the baby is barely walking. Where its first steps take it will be determined as much by the paths other policies have opened for it as its own inclinations.<\/p>\n

But like any infant, observers broadly agree that it will take a while to mature. A $3.3-trillion economy does not turn around overnight.<\/p>\n

\u201cThis process of diversifying trade, of boosting investment and growth, is going to be a multi-year, potentially multi-decade road that we\u2019re on,\u201d Tombe said. \u201cWe\u2019re only at the very, very beginning. There\u2019s so much left to do and so many unanswered questions still that need resolving.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

This article was published by The Energy Mix on March 27, 2026. By Bob Weber Prime Minister Mark Carney\u2019s Major Projects Office is now six months old, just a baby in government years. But those [Read more]<\/a><\/p>\n<\/div>","protected":false},"author":6,"featured_media":67641,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"give_campaign_id":0,"footnotes":""},"categories":[1],"tags":[13,2929,590,3025,3074,584],"class_list":{"0":"post-67640","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"tag-canada","9":"tag-carney","10":"tag-economy","11":"tag-major-projects-office","12":"tag-new-world-order","13":"tag-trump"},"acf":[],"yoast_head":"\nCanada's Major Project Office is six months old. - Thoughtful Journalism About Energy's Future<\/title>\n<meta name=\"description\" content=\"So far, the Canadian government has tossed carbon pricing, oil sands emissions caps, and\u00a0weakened\u00a0EV sales mandates.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/energi.media\/news\/high-hopes-few-details-as-major-projects-office-hits-six-month-mark\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Canada's Major Project Office is six months old. - 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