Ottawa Must Revamp Policies to Attract Private Investment in Energy Projects

The proposal for a pipeline by Ontario and Alberta premiers Doug Ford and Danielle Smith has raised concerns about taxpayer involvement in energy projects. The Northern Shield Energy Corridor, a 3,300-kilometre pipeline, would transport crude oil from Hardisty, Alberta to Sarnia, Ontario. This project is long overdue, as Canada relies heavily on Line 5, an existing cross-border pipeline that moves western Canadian oil through Michigan's Straits of Mackinac to refineries in Sarnia.

The federal government has created a policy environment that drives up the cost of energy projects and repels private investment. The Trudeau-era policies have added subjective criteria to federal reviews of infrastructure projects, making the approval process convoluted and time-consuming. The assessment process for energy projects has become so complex that project approvals take longer than ever.

The Carney government has not reformed this approval process but instead enacted Bill C-5, which granted the federal cabinet the power to fast-track projects deemed in the 'national interest.' However, since its implementation, no project has been approved for faster approval. This new concentration of power increases the chances for corruption and invites more legal challenges over Indigenous consultation.

The governments in Canada should not moonlight as energy companies. To help realize energy projects, Ottawa must create a policy environment that attracts private investment rather than repelling it. The current policies have already led to billions of dollars in costs, including stricter methane rules and a rising industrial carbon tax.